I suggest you find another agent or tell your existing agent that he/she needs to come up with a better pitch and figure out how to overcome the objections. 

Investing out of state may introduce some challenges but they can be overcome by educating yourself about the market and building relationships with good people who are local. 

I would not feel comfortable saying the same thing for 3 years or 5 years from today.My perspective is the large initial negative cash flow of a high LTV loan is unlikely to be overcome in the short-term even if there is no downward cycle on the property appreciation.