Anyone have success with out of area/out of state rentals over the long term?

[Rob Cee]

I'm curious if anyone on this forum has had success with out of area or out of state rentals over the long term.  Investors in expensive parts of the county often have to go far away to find good cash flow and good numbers.  And I know there are many, many horror stories of people losing their shirts buying out of area (and especially out of state) rentals.   But I was wondering if there are any success stories?  Where investors get solid cash flow over long periods with out of state rentals.  It is tempting when you live on the coasts in see the numbers for rentals in other areas.  I have personally owned rentals both locally where I live and out of state.   I found out of state very tough to make work.

[Jay Hinrichs]

@Jeff Blanchard 

Jeff like your ideas I really like the electronic code for the locks that takes that whole lost key component out of the equation.  The main issue I see especially in the C class and much into the B's is so many tenants do not have checking accounts. And only pay with cashiers checks money orders or cash.. Can you run a money order through the system your talking about for on line rent? I do have one tenant who sends me some kind of electronic payment that I get an e mail notification.. But so many Hud tenants and such just don't have checking accounts and never will and are not to computer savvy.

As to @Rob Cee 

 question form my personal experience I would say its 50/50 at best 50% kind of make it through and 50% figure out over time that going out of state  ( and its not necessarily out of state its low end C class rentals) is far tougher and far more risky then they could imagine.. the West coast investor if they are not familiar with the south mid west north and the neighborhoods these homes are in  are in for a big awakening... It just won't be like it is at home.. Like Portland were I live were there is less than 1% vacancy.. you just don't see the issues you see out east.. Not that you can't have them close to home you will.. but its just not the same.. The rental pool demographic is far different a long with cultural habits.

On thing I like to point out in the TK or out of state investing is.. WHERE are all these properties coming from... We cannot use the sub prime melt down and poor owner occ's losing there home story anymore... Those by and large have flushed through the system. These foreclosure and distressed homes or at least 50% of them are coming from landlords that failed and gave up and walked away... And that is a fact... So yes some make it but many don't and the one's that don't are not on BP posting about it.. Your only getting the ones defending the investment and how great it is for them.. the ones that lost all their money well they are doing other things and lost interest in the dream  that's my take on it.