Residential RE is based on what your neighbors pay so if you are all in less than they are every time you are doing well

If you do choose to invest out of state, the best advice I could give you based on what I have observed running a local real estate group here for over a decade is build your own team.

Do you consider worst case scenario and base your potential offer based on this? 

This is a passive way of earning with real estate-based security, protection and insurance.

@Benjamin Ying The only way to cash flow in the current market is to employ a higher effort strategy like STR, MTR, rent by the room, etc.The "cash flow on paper" properties in stagnant markets or C-D class neighborhoods are probably not the type of places that you want to own long term.

So often rentals don't have taxable income; and once they do it's still not subject to the payroll taxes paid by W2 wages or on self employed income. 

It will be in addition to the first depreciation.That has to go into the "Tax Planner's Guaranteed Employment Act". 

The property is only 9 years old so that's why I put only $10k also, they are opening a new company that will employ thousands of people nearby so that's why I put a 6% income growth and only 3% expense.

At one point my Brokerage employed over 70 Agents and trust me, those stats track.So when a company starts advertising on my show, or an Agent starts working at my Brokerage I can usually if they'll make it long term or if they'll flame out.

If you employ staff, workers’ compensation insurance is required.