Buying RE in a different state than your own?

[Michael D.]

Hi there! Newbie here. I'm really excited to get into REI and have been searching my area for quite some time.
But the prices are too high and/or not worth it to invest here since the Cash on Cash ROI average about 4-8%.
I know I can personally do better in the stock market or peer to peer lending with those rates.

So I've been talking to a couple buddies out of state (OH, MN, ID, etc..) where the markets aren't as crazy as the greater Seattle area.
And I have been baffled by how cheap the prices are and have run some calculations which provide a way better return

I'm under no illusion that I can ask the same rent prices they do here in the Seattle area, but am gathering an average from other rentals in the area.

The problem is, that OH, MN, ID are not around the corner and driving over to check out the property to see if things are still alright is not an easy task.

How have you dealt with buying property out of state? Using a good property management company is key I'm assuming, what else should I watch out for?

Thanks in advance!