In short, it may be more valuable to pursue areas where the cash flow isn't as strong on paper because it's made up for in other problems you avoid with properties in areas that cash flow well on paper at first but suffer from high turnover, a high level of vacant properties nearby, etc.- Check up frequently on the property and conduct walk throughs as allowed by your lease agreement.- Hire a solid property manager who gets paid to keep tabs on the property for you. 

If you're investing out of state, you will almost certainly be classified as a passive investor which just means you can only use (paper) losses to offset income from other rentals/passive activities.At the end of the day though, look at the tax side of things as a nice cherry on top rather than the thing that makes a deal work for you.

New Jersey gets a bad reputation because there are cities with extremely strict landlord laws, people invest in those areas thinking they are getting a good deal because the numbers "look good" on paper, long story short many of these areas are horrible places to invest with some of the strictest landlord laws in the world. 

I own a 1 bedroom cabin worth $615k on paper and it's only 900 sqft.

There are tons of properties here that cash flow super high on paper, but they wouldn't be my cup of tea.

i bought property at tax sale auction in Dekalb county Georgia, over 12 months ago, now i am doing barment,  i published ad news paper,  i sent 30 days notices to ex owners and all parties might have interest,  and the property now it empty / unoccupied.my question is: if 30 days notice expired and no body redeemed, can i enter the property and start to fix / repair the property, and rent it??

Most people in REI are familiar with how their own state works (on paper) but not how other states work (starting with Judicial vs.

I am also having my hard money lender put on paper, that if things get delayed that their will be a clause in the loan that gives me leeway on time, so that I do not get screwed if I cant build or sell fast enough.... 

You also want to make sure the cash flow is real and not just a calculation on paper. 

The numbers look good on paper...purchase price of $110,000, rehab all in about $40,000, and resale value should be around $220,000.