How vital is it to be in the same city as your first investment?

[William Fidler]

JUST joined, and JUST posted an earlier question. I'm currently in Austin, TX, but found a pretty sweet looking deal in San Antonio (about a 50 minute drive). You guys/girls think I should go for it and just know I'll have to hire out a handyman, possibly a management company to deal with most of the problems?

Is a management company practical if I would only own 4 units?

Thanks!

Billy

[Will R.]

I think this depends on the kind of investor you want to be. Practice makes perfect. So, I would say start with your long term plan. If you want to be totally hands off, try to start that way with a PM. If you do not want to be constrained to one city, start by buying in another area. If you start by doing this you will quickly learn the pitfalls and how to deal with them. 

I personally buy local because I am fairly hands on. However, it all depends on what your strategy is.