Just another what would you do?

[Kevin E.]

I want to start out by first saying thank you BP for providing a platform for the new and uninformed like myself to ask questions during the starting out phase.

Scenario: I am currently refinancing 2 properties I have (1 rental / 1 primary) to pull money out for a down payment on my next property and gain positive cashflow on my rental.  We will be pulling $40k +/- out and intent to reinvest it.

Problem: While we would love to stay local and try our hand at managing our own place we live in Camas, WA (near Portland, OR) and housing prices are rather high that wouldn't allow for much with only $40k down.

Goals: Invest for cashflow in an area that has a strong economy and has a positive outlook in the job market for the foreseeable future.

Possibilities: Wait and save a bigger down payment for a better local property, purchase a lower end property in the Vancouver, WA area that produces little cashflow but can benefit from Portland's growth, or invest out of state with a turnkey company.

I am leaning towards the out of state option as I may even have enough to purchase more than one property but my wife gets a little nervous investing in an area that we don't or have never lived.  I would love to hear the communities thoughts on this, can anyone help guide my decision???