The 1% does not always apply in Canada like it does in the states, In Ontario anything I have seen in my market following the 1% rule is actually a bad investment because they are usually in towns with negative to no growth.

Currently we been experiencing growth and have hard money lined up but the APR and Down on these loans are typically higher.

Right in the area of 20% population growth as well as job growth and rents continuously on the rise.

I really enjoying the thought of building, but it is a big task to take on.

I am ready to become very uncomfortable, which I think will lead to growth and new opportunity. 

We're experiencing a lot of growth pretty soon and there is a lot of opportunity here.

However, if I was to buy out of state... would it make more sense to at least be able to weed out a few markets and go to markets that have in general, better vacancy rates, more demand, appear to have stronger job growth, and potentially more favorable taxes, or even states that are more favorable to landlords....??

I am not entirely sure on the long term growth of the area in terms of equity but I would like to be in an area where potential tenants are available. 

The big gains I see is cycle buying for equity growth.

Toll roads to downtown, so traffic (while still sucking pretty badly) isn't suicide-inducing.There's lots of growth down south (288, NASA area) but, again, not all that scenic.