Q! All cash purchase out of state or financing to buy in SoCal?

[Jennifer Noble]

Hi All,

I'm trying to decide if I want to take on the risks of buying property out of state.  I like this idea because I can probably get a property for 35k-40k all cash in the MidWest somewhere. This would allow for potentially good cash flow while still allowing me to pay for project management, etc.  I could also potentially refinance a property bought with all cash and then purchase another...  But it would require me to fly out to the city every so often to check on things, among other problems I'd have to manage from Cali.  This is not to mention the staring difficulties of finding people to trust in my chosen market.

On the other hand, I could reduce the risks that come with out of state worries (flights, PM's not doing their job, etc) and buy locally in the SoCal area.  However, it seems I will NOT be able to do all cash.  This means, I will cut into my cash flow significantly and put myself on "the hook" for another 15-30years if I get a conventional loan.  This doesn't feel ideal to me, but I know I could go to my property quickly if need be (well, depending on LA traffic).  
I understand the specific numbers matter most, but I am hoping some of you can give me input on what other factors I should consider or what you think might be the best choice.  Perhaps there are some big pieces I am missing that I haven't considered.

You all will help me get over my analysis paralysis!  ;)