Pitfalls of out-of-area apartment investing

[Tom Lafferty]

I am currently looking for 80+ unit properties where I live in DFW.  With high demand and low supply I've started researching other areas.  The problem is that my only experience is a 32 unit apartment of which I am the asset manager.  I feel that I'd be able to effectively manage a management company at this point, but I'm looking for input on how properties go bad with non-local ownership.  I have dozens of friends locally (DFW) who have bought underperforming properties from out of state owners, and don't want to repeat their mistakes.  The story on a lot of them is that someone from another state (sorry-its usually CA!) bought it as an investment (at the wrong price) and completely ignored it.  

I'm able to effectively analyze a property, and would certainly go and learn an area before making offers.  Is it enough to think I can look at monthly reports, stay in contact with the PM company, visit once or twice a year, and expect the property to do well?  Since I'm generating my own reports on the 32 unit, I think I have a good handle on what to watch for in the financials.  It is very encouraging to see how many of you do this successfully, and buy all over the country!  I just want to make sure I'm not crazy to look at doing the same thing after only 1 deal.   My initial thought was to look within 3-4 hours of DFW, but that doesn't offer much, and I'm not sure that would really be so different from buying something 12 hours away when it really came down to it.  At least I could fly there in a few hours!

Any insight would be greatly appreciated!