We are out of state and have local property managers.

In our area 67% of tenants will move locally because of issues with maintenance - which are often issues with communication.  

My PM quotes me and does the work on my buys to get them rent-ready and then manages them and I'm local but they do the same for many out of state investors as do many Property managers in Milwaukee such as Citywide Rentals, Welcome Home Milwaukee or MKE Leasing. 

Contractor – This is one I really need help from the bigger pockets community in the local area. 

We worked with a lawyer over there who is a US ex-pat who created and registered a local LLC for us, which owns our properties.

I would suggest going to the find a lender tab here on bigger pockets to find a local lender who has the same products. 

With that in mind, my first idea was to buy a condo or a house in my local area (Palm Springs, CA) and use it as a long term rental. 

One thing I really enjoy about what I do is I actually go out to all my markets spend time there and get to know the local areas etc.. thankfully the deals i did for this guy in SW WI I did as a capital partners so I owned them and did not have to foreclose or go through his probate etc..

I honestly wouldn't trust anyone else with my clients but him when it comes to that local market.

If the locals say it's rare then I would not worry.