As others say, out of state investing is challenging.

As with most people starting out - having the 20%-30% equity to put in the deal is the challenge. 

Insurance challenges are growing nationwide, not just in California.

As others said out of state can be more challenging based on location but local or out of state both can be done. 

Also, after a year, the mortgage hasn't been paid down by much, especially if it's a 30 year mortgage.The only challenge you may run into is if you purchased it using a low or no money down mortgage option like FHA or VA lending.

Major metros pose certain challenges, as everyone has heard. 

Quick question: What’s been your biggest challenge when managing smaller multifamily properties?

It's definitely challenging but there are lots of people doing it in Canada.

So, I'm looking to invest in other markets and trying to focus on one or two so that I can build knowledge over time, but narrowing it down is a challenge. 

Quote from @Michael Smythe: We're far from perfect, so our 2 cents should be taken lightly.Most of the national companies are setting up franchises and the challenge is with the individual franchisees.