Is a MLO on an out of state property a bad idea?

[Julian Hicks]

I've recently been looking for properties that I could potentially purchase using an MLO. I currently reside in Southern California where, as you probably know, Real Estate prices are through the roof. This has driven me to look into neighboring states such as Arizona and Nevada for investment opportunities. The deals in these states are much better and give me a better opportunity to cash flow. What would be the potential negatives of leasing an out-of state property? Is it too risky?