If you do decide to invest out of state turnkey or otherwise, you can certainly find some very affordable cash flowing options, but as Jeff said there are some precautions to take, especially picking the right team.  

However since this is RE and I wanted to take special precautions.

There is one precaution to take before your rekey the whole house, PM me for more info.Best.

What precautions should I be aware of?

We read the Airbnb host forums for tips and ideas, as well as to learn precautions related to the hospitality industry.

I would suggest planning to use some deposit for a pest control place to do a flea treatment as a precaution.  

Any suggestions/precautions I need to take while dealing with a HUD home my Realtor looks pretty clueless herself!?

Also when you send workmen to the house they should take appropriate precautions for the age of the kids.

Not as punishment, but as a safety precaution!

There is always more risk buying a distressed property, and you should take that into account on your offer.I would recommend taking precautions, ideally having someone sleep there at the property during the renovation if people breaking into the property is a concern and it is safe to do so.