You could effectively get it done with no liquidity by posting collateral or doing a HELOC on one of your other properties, but then once again is the pitfall of over-leveraging.

What are some pitfalls to look out for (aside from knowing the market)?

Most of the foolish beginner's pitfalls and potholes could be avoided by learning from someone who has already made those mistakes, learned from them, and moved on to success.If you have spent any amount of time here on BP you will have come across numerous posts from investors who blast the novice entrepreneur for clogging up the market with bad deals, or more concerning to me, accidentally break the law and risk major issues.

I hope to understand more about investing in a non-disclosure state (making a good offer), dealing with renters, and potential pitfalls. 

What are the pitfalls of investing in out of your area (or state) real estate markets?

I am dealing with a situation like this in the Boston area and wondering what potential pitfalls may be.Thanks!

You will learn and earn, and avoid the pitfalls cited earlier in this reply post.

I feel like having 8 rooms to rent out making managing it more of a full time job than going the traditional route, but also brings in higher rents and a vacancy may be 1/8 or 3/8 rather that either 50% or 100% vacant.Do you have any experience with renting by the room, any serious pitfalls I'm not aware of?

Response to Angela DeBorjaI believe you need to be where sellers, owners, investors and auction bidders are to really be market wise.Learning this business has many advantages, but also giant pit falls; tenants suing you, not paying rent, rent escrow, no income (mortgage must be paid), repairs, unnecessary calls.negotiating with sellers can be distressing; tax sale, mortgage foreclosures, health issues, bankruptcy, estates.Bidding on tax certificates, lots of competition.I like to avoid the competition and deal directly with people who really want or need to sell.Go where you are respected and appreciated - to the sellers who want an offer.Rent court - who goes there - tenants who don't pay and----- and landlords with tenants who don't pay!

There are a lot of pitfalls to having your license, not the least of which is falling into the real estate agent's mindset, and getting confused about what it is you really do.