This is 100x more true if the property is in a C or D area.I'd suggest reading up on the topic on the forums, where you'll find many examples of inexperienced investors crashing and burning hard trying to do OOS REI...the story is usually the same--they had no experience with REI, they couldn't find any cashflowing properties locally, but they saw that properties in other states (often the Midwest) cashflowed well on paper.

When the next Covid world shutdown, or stock market crash, or China and the US stop Trade and there are shortages, or if the Panama canal goes dry in a year,  etc etc. 

If you miss payments on the underlying loan you can go to jail after a very unpleasant investigation.9.

That may be due to unpleasant stories I hear so often or simply lack of knowledge and experience.

But multiple credit cars, car payment, rent is a no go.I've had a few tenants that went thru foreclosure when the market crashed, and want to rebuild.

Many wholesalers crash and burn because they miss this point, focusing too hard on sealing the deal instead of really listening to the people they're supposed to help.

We have the best of both of these worlds.As far as making money, immediately after the crash of 2009 etc REI was a business for 3-5 years now RE is back to being an investment.Ours both cash flow because we basically cashed In almost all equity with very little finance. 

The Covid crash in 3rd week of march 2020 was bonanza for me.

I had one I used to use but my computer crashed recently.

I will share my "Most Expensive Lesson" in the comments.To kick things off, here are ten examples of expensive lessons or mistakes in real estate investing:Underestimated Repairs: The classic pitfall where the cost of repairs and renovations far exceeds initial estimates, impacting the overall budget and profitability.Tax Liens: Failing to account for or being unaware of existing tax liens on a property can result in unexpected financial burdens.Contractor Liens: Not settling payments or disputes with contractors can lead to liens against your property, complicating sales or refinancing.HOA Fines: Overlooking or violating Homeowners Association (HOA) rules can lead to significant fines and headaches.Bad Loan Products: Opting for loan products without fully understanding their terms can lead to unfavorable financial conditions, such as higher interest rates or unfavorable repayment terms.Ignoring Zoning Laws: Investing in a property without a clear understanding of local zoning laws may restrict its use, affecting your investment strategy.Overpaying for a Property: Lack of research or getting caught in a bidding war can result in paying much more than the property's worth.Neglecting Due Diligence: Skipping thorough inspections and background checks can uncover unpleasant surprises after the purchase is finalized.Poor Tenant Screening: Failing to properly screen tenants can lead to unpaid rent, property damage, and costly evictions.Underestimating Market Risk: Not considering market fluctuations can lead to investments that don't pay off as expected, especially in volatile or declining markets.We've all been there in one way or another, facing setbacks that seemed daunting at the time.