Renting in home market, while investing elsewhere

[Christian Austin]

This thread was prompted by the discussion in "To buy or not to buy owner occupied multi-family in Boston suburbs" on continuing to rent in an poor investment home market while owning cash-flowing properties in a good REI market. Although I understood that this strategy could work financially, I was originally not keen on this idea. After feedback from BP members, in particular @Ziv Magen, and becoming frustrated by the Boston market, where investment properties that barely make financial sense at list price are going for $10's of thousands over, I am seriously considering continuing to rent while investing out of area or state, rather than overpaying for a property where I live.

It appears that some people on BP have used this strategy. I'm curious what the experience was/has been like for those that have taken this approach. Where did you invest? Somewhere you were familiar with or completely unfamiliar with? How did you put your team together to purchase and manage the property? I'd be interested in hearing other's stories and recommendations.