Buying multifamily property out of state

[Bobby Nalua'i]

Hello all. This is my first post here. 

I have been investing in single family residential rentals since 2004. To date, I have 15 properties, and many of them are approaching zero balances on their mortgages. In addition, price appreciation has been solid over time so I have at least $700,000 of equity in all of the properties.

I want to make the move into commercial real estate, and I want to use the equity in some of the single family properties as the down payment. I prefer multifamily, but I wouldn't be opposed to NNN retail.

One issue that I am trying to figure out how to deal with is the fact that there are very little attractive multifamily properties in my area (eastern North Carolina). There are, however, smaller apartment complexes around the country in places like the Midwest that have decent Cap rates. So my questions to all out there who have bought out of state multifamily properties before are, how do you begin this process? Do you actually visit the properties, and if so, how many times? Does your lender typically do a decent investigation into the rent rolls to verify the cash flows are reliable or are you responsible for doing this? Should I avoid any property that is managed by owners and stick to ones managed by third parties? 

I also wonder if it makes more sense to use 1031 exchanges or to simply refinance and take cash out of the existing properties and keep them.

These are just some of the initial questions I have. I look forward to any discussion on any of this.

Thanks

Bobby