Strategy 2016: Cautiously buy out of state properties, accumulate cashflow for my balance sheet (to qualify bigger loans).Started 2016:6 (all out of state) rental properties.Holding cash/stocks for out of state investments.Today: Raised rent on 3 properties.Added 3 more rental properties, all in IndianaPurchased 2 properties from whole sellers and remotely rehabbed.Used a new loan to purchase one higher priced and newer property (remotely rehab).

@Johnny Hoang, Be cautious purchasing your first property via an online auction.  

I'll proceed cautiously, and speak to an attorney to make sure I'm not stepping into potential legal problems

From my experience, lenders are very cautious with new investors who don't have a proven ability to make deals work. 

I am cautious and mildly risk averse.

Things such as modifications to CAs prop 13, the new CA "homeowners bill of rights", etc will give lenders reason to be cautious.

@Mark Ellis, be very cautious about crowdfunding, there are many opportunities and scams. please have an attorney review the deals. remember the more partners, the more headaches, the more lawsuits.  

(be cautious and please report any unsolicited unwanted offers.)So yes absolutely you can do this.

Having said that risk from municipalities deciding to put a moratorium on rents, risk from Covid, risk of reemerging sluggishness in the economy and the myriad other risk factors is driving cautiousness in underwriting everyday. 

Be cautious of your property source in Memphis.