Investing out of state for cash flow

[Ron Karr]

We are based in San Jose, California. Given the bay area prices, the rent to price ratio is terrible here. We are exploring investing in other states where houses can be purchased for $10,000 to $250,000 a piece.The goal behind this is to improve cash flow and generate passive income.

1. What are the pros and cons of investing out of state?
2. Which cities are relatively safe, offer low-maintenance (not much weather / nature related damage), and positive cash flow with 25% down payment?
3. What occupancy rate should we factor? 
4. What else should we know?

We can't leave the bay area for the next 10 years for various reasons. Therefore, these out of state properties have to be remotely managed with the help of a property manager.