ARV is $730K for a 1,700 sq ft (one just sold in the neighborhood for $740K) I paid $495K and I'm calculating $120K for the addition and rehab including architect plans permit and fees. the property have 1200 sq ft and I'm planing to ad 500-600 sq ft.

I didn't want to offer over my parameters in spite of the extra activity, and it worked out that we got an offer accepted on a house that was being marketed by a relocation firm.Once our offer was accepted, we did most of the paperwork through email, signing what needed to be signed in front of a notary, and using Fed-Ex to deliver the hard copies.

Before buying far away you must get on a plane.

I was thinking lately about taking out a loan or two for rental properties, but I have some concerns about the federal government/politicians/partisanship, a tech bubble in the stock market, shadow inventory held by the banks, economic problems on the part of the country that could affect the housing market, the drastic increase planed for the flood insurance industry (and I'm coastal) and the fact that the banks haven't really been brought to heel since 2008.

Have to board a plane, so cutting this post short.

I was also planing to increase the rent for the second unit from $1050 to $1200/mo based on the owner saying that both kitchens and baths were just redone, along with the ac unit, and nothing else is needed.

But if you serious hope on a plane and spend a week there drive around, talk to people who lve there, learn the city.

I'm planing to invest in that area too. 

Unfortunately, due to our variable schedule (For example, last week, my wife found out Thursday afternoon that she had to be on a plane for Mexico on Friday at 9am for a 5 day assignment), I am concerned that we are not going to have the time to do that for a new market.Ryan,I totally agree with you.

You could buy with hard money and refinance once stabilized with a tenant in place, so that would be your exit strategy.The point of thinking about exit strategy is simply you need to know what you are going to do with the property because that will affect what you pay and how you structure the deal.As an example, I am planing to buy a 5 unit property.