While investing out of state can be more challenging since you need to put together a local team, it also offers many rewards and can make it easier for new investors to get started!

It might feel out of your comfort zone, but the potential rewards can be worth it if you're willing to do the work.

Jim invested in a small apartment complex, and within two years, not only did the property's value appreciate significantly, but the rental income also provided a steady cash flow.Real estate offers a level of control and tangible value that can be really rewarding.

But if “by doing” he means investing without first having the knowledge to KNOW the risks, EVALUATE the risks (and potential rewards) and to TAKE ACTION to reduce the risks then the cost of this learn by doing education is probably going to be significantly more expensive than a degree in real estate from MIT, let alone reading the\ree or four texts on your own.  

If you want to be a lender, you need to consider the risk/reward. 

For those of you experienced in finding undervalued properties, what are the biggest risks and rewards you've encountered?

Paying above market to gain other benefits is sometimes a difficult pill to swallow, but for the unbiased investor looking for the best” ROI the risks and rewards must be analyzed rationally.  

Was an awesome experience and very rewarding to this day. 

Very rewarding.

They have to recognize risk versus reward.