Once again start talking to a realtor ahead of time to open your options up and start to get an idea of the market.I highly suggest you look for a realtor with the Military Relocation Professional (MRP) designation because they have taken extra courses to learn more about service members and more importantly the VA loan.

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

In most cases, the lien buyers do not want the property they want the interest and extra fees.

However, if you don't have "earned income" (as opposed to capital gains) then you cannot contribute to a Traditional IRA or HSA and deduct it from your taxable income.

He’s been earning on it for 10 years and maybe he thinks he still can, but there was already a serious water damage issue due to the property sitting 10 feet below street level and water building up every time it rains.

Do you want the cash flow or do you need some extra cash right now?

As out of state investors, my partner and I have extra costs that local investors don't always have to account for (IE: local can self-managing, access a local handyman, leverage existing relationships, etc.).

For smaller properties, an extra vacancy can throw the property immediately into negative financial performance. 

You marry for money, you earn it.

There are certainly many advantages for investing in your own backyard in terms of existing relationships, understanding the market and extra peace of mind especially when just starting out.