.- Increased Travel and Communication:Regular visits and long-distance coordination can increase both time and expense.- Legal and Tax Complications:Navigating different state laws and tax regulations can be complex and confusing.Out-of-state investing can be a great way to grow your real estate portfolio, but weighing the benefits against the potential challenges is essential.

Sure, but it's called creative financing which of course we teach, and in my humble opinion requires someone who knows what they are doing to properly put it together.  

I’m looking for advice on how to do this properly. 

Be wary of TX property tax as it is very expensive and can impact cash flow if not factored properly.

Thus, the next challenge and frontier for many DSCR lenders seeking to serve the growing number of real estate investors pursuing this strategy is to cement a qualification and underwriting methodology to properly qualify MTRs and accurately project their revenues.

You can't just always convert an old garage....for example the existing slab must have the proper PSI, vapor barrier, and steel.

Or what is the proper way to deal with it?

Might be you're not set up properly to obtain a separate account. 

Avoid properties on main streets (traffic noise, avoid homes near freeways (smog/traffic noise), avoid homes without garages if most other homes have garages, avoid being in airport flight paths, avoid over building or over rehabbing for the area comps, know how to properly and accurately estimate ARv and rehab costs, and have money lined up in advance.

@Ryan Tongue have heard of termites in Michgan before, but have never SEEN termites in Michigan.Winter usually kills them.The biggest challenge with this issue is doing it properly.