I am the secretary of the Otago branch so if you decide you want to invest for more cashflow than pure capital gain down here then feel free to give me a buzz or email or join the OPIA and I can put you in touch with who you might need to know? 

Term may be great for pure protection while you're building your assets, but like some of the prior replies it will vary with your life goals, plans, and preferences.First of All if term was so great for "everyone," (blanket) you'll be hard pressed to renew that term policy past 65 when you'll probably need it most and then secondly as term gets past 40-50,50-60, and 60-65 its prohibitively expensive even on the just the pure insurance aspects of it.Then 65 till death you'll need a great game plan and have enough assets working you and your heirs because if they inherit the estate without adequate liquidity to pay the final expenses they would have to fire sale the assets/real estate in order to do so at a time when they probably wouldn't want to focus on those business particulars.Then on top of that if you own more than the current 5.25 mil in assets you may have an estate tax issue as well subject to the current 40% rate + state if applicable.If you would have fully funded your permanent policy adequately to the MEC (modified endowment contract) limits when insurance was cheaper such as at "birth," by the parents, by the time the kid is 8-12 they could have a policy that probably earns more than cost of the premium payment based off internal policy returns which would allow the policy to continue indefinitely assuming you have a professional review your policy annually and do analysis when you plan to take a withdrawal or a loan to make sure the policy is respected.

But for someone considering out of state investing in an area, to suggest the state/county/city are a good idea is pure insanity.  

@Ryan Deasy Yea, completely agree with you Ryan that there are "better" cash-flowing properties out there on a pure gross rent basis, but hard to truly compare without diving in with differences in taxes, utilities, maintenance etc. 

That is purely "wholesalers" propaganda to legitimize themselves.

My reaction could be purely an age thing.

You mean like the Durham DA who went after the Duke Lacrosse team a few years ago for PURELY political reasons?

I think most taking the $10k/month are assuming they will live to at least normal life expectancy and value the freedom of just getting $10k/month provides if purely passive. 

What else should I factor in other than purely numbers?  

I know too many Houston investors that have built up 1000+ unit portfolios that bring in $200k+ a MONTH of pure profit (doesn't even include appreciation, which there has been a ton of in Houston, or principle reduction).