More cash flowing properties outside large urban centers?

[Khaled Majouji]

Hey all,

Im from Montreal, Canada so your local market might or might not reflect the reality i see here, but ive been noticing a trend while searching for rental property: it looks like the further away u get from a large city (up to a certain distance) the more positive cash flowing opportunities there are! I just came across this 4 plex for 209 000$ with 22 800$ in gross yearly rents, it also said seller was motivated so im sure it could be talked down to 185 000 or so, thats over 12% annual return! Ive seen quite a few around those numbers, and as a newbie investor im happy i now know its not that hard to find, just gotta look on a regular basis! Anyway my lil problem here is that most of those properties are about an hour drive in any direction from where i live (i have this duplex in a very central location that i live in and rent the upstairs, not anywhere near beeing cash flow positive if i didnt have as much equity in it). Anyone has experience with having rentals an hour away from your place? What are the potential ups and downs? Im not sure if its a good idea but the cash flow is very tempting... Any input?