Don't let the distance stop you from investing out of state - go where the best deals are.The #1 most important thing is to have a rock star property management team.

Go ahead and connect with local people in Montgomery who are flipping or doing buy and hold (whichever you are pursuing) or agents that are rocking it. 

I've seen the red flags along the way but today I've had a long chance to review the work done, what was agreed to be done (although much was verbal...again, I know) and the quality of the work.

I own in Memphis and Little Rock.  

The fact that there are little to no comps in the last 6 months is a huge red flag.

The only catch is - the IRA LLC is named as a loss payee / mortgagee on the insurance documents - so I think that could be a red flag in an audit.

We are looking at starting a Round Rock meet-up soon.

Now you have full coverage in the event of a loss and you satisfy the mortgage company who sees the mortgage holders name in their system and your sub-to raises no red flags.

You can tell the tenant to kick rocks, cause you are out real costs because of him, but if he goes to court I think you will lose.

There is a lot of red tape for both you and the seller.