Thinking about changing my investment area

[Mariah Jeffery]

I have 19 units in South Dakota where my husband's family lives. They do the maintenance and property management for us. The reason I chose to buy there instead of where I live is because in the Portland area, it's been near impossible to buy anything with decent cash flow for the last 5+ years. In SD, I have one property that meets the 2% rule and the rest are about 1.4%-1.7% (most closer to 1.4%). This gives me enough room to pay a property manager and maintenance person (w/ family discount), and still have good passive income. Doing business with family has it's pros and cons, but for the most part it has been working well.

I'm considering switching investing areas for the following reasons:
- There is a huge amount of competition for properties where I invest now. Last week, I put in a $65K bid on an REO listed at $59K. There were 4 offers the first day of the listing, with mine being the lowest. I have not bought property since March due to being outbid every time.
- A large percent of my family's net worth is already dependent upon the economy of a fairly small town, as well as familial relations.
- Things have changed here in Portland; I have actually seen duplexes in moderately nice areas listed on the MLS that almost meet the 1% rule. If I get really lucky, I may be able to find one that brings in 1.1% (since I'll only consider investing in a nice area that's within 10 miles of my primary residence if I'm going to manage it myself).

I'm considering trying to buy a property locally. Returns are still fairly meager, but I think I could get over $100/door cash flow if I find a good deal. The main benefit would be the control I'd have over it.

Another option is to try to buy properties in Orlando, FL, where I'm from and have family. My parents (60 and about to retire) are not interested in doing the PM work, so I'd have to hire a company, but my dad would help with minor maintenance. He'd help me look for a property and check up on it every now and then. I've only done a little research on price to rent ratios in Orlando, but on the surface they look to be much better than Portland and probably at least as good as SD. I visit Orlando once or twice per year anyway, so it would be nice to be able to write off some of that travel and to combine business with pleasure.

Changing investing areas will require a time huge commitment to do the due diligence, find a good agent, build a network, etc. I either need to go all out or just stick with the status quo. In Portland I could join the local REIA, but in Orlando I don't know where I'd begin. Any thoughts?