@Nick JohnsonIt's fantastic that you're educating yourself and pursuing your objective of acquiring your first rental home.

So, typically you as a principle have to personally guarantee the loan.

Let's break down a few considerations:A popular tactic is to invest in properties outside of your state, particularly if your investing objectives conflict with the state's market circumstances.

Here are some tips to help you make the most of your house hacking experience:Clearly state your investing objectives.

There are risks and challenges with any investing strategy, so it’s good you’re looking to find those out on the front end but don’t let that stop you because most of it can be avoided with following good advice and adhering to sound investing principles.

What are some objections a seller might have to not reducing the price of their property?

Remain dedicated to your objectives and keep learning as you go, regardless of whether your emphasis is home hacking for passive income, using the BRRRR approach to generate wealth, or flipping houses for rapid cash.Please feel free to join in conversations and ask questions on BiggerPockets—the community has a plethora of expertise. 

I would never pay a tenant for their keys back as a matter of principle but this one I would probably renew.

@Yang ZengYour situation presents a common dilemma for real estate investors: deciding between investing locally where you might be more familiar with the market but face high property prices, or exploring out-of-state opportunities where properties may be more affordable but come with their own set of challenges.Here are some considerations:Risk Tolerance: Take into account your degree of comfort and risk tolerance while managing properties remotely.Objectives: Specify your investing objectives, including cash flow, appreciation, or a combination of the two.Market study: To fully grasp the development potential, employment opportunities, and rental demand of prospective out-of-state markets, do in-depth market study.Hybrid Strategy: Another option is to choose a hybrid strategy, where you invest in a combination of local properties for stability and simpler management, and you set aside some of your portfolio for out-of-state properties for diversity.Before making a decision, it's essential to consult with real estate professionals, conduct in-depth market research, and possibly network with local investors in the markets you're interested in.Remember, there's no one-size-fits-all answer, and the best strategy depends on your financial goals, risk tolerance, and personal preferences.

To make sure your investment is in line with your overall financial objectives, you should also consider speaking with a financial counsellor and getting guidance from seasoned real estate specialists.Good luck!