Out of state investing

[James Figg]

Hello everyone,

My wife and I are new into investing and have just purchased our first rental out of state, Bullhead city, AZ. We live in Anaheim, CA and wanted to get into the buy and hold game for increased cash flow. We are currently refinancing our house to pull $85,000 out and to buy the rental cash to get better cash flow. Was that the right thing to do or should we have just put the 25% required down and had a mortgage on the rental?

Also, I was told by the y realtor that since we are out of state we need a property manager. Does anyone know if that is true or if it was just a recommendation. Of the ones I looked into they charge 10%. Is that a fair price?

Thanks,