There's still something to be said for investing in your backyard where you can be more hands on but I feel like you can substantially mitigate the risks of investing from afar by taking certain precautions, making out of state investing much more lucrative. 

Can some of you expound on these precautions and potential roadblocks?

I wanted to get advice on some proper precautions to take.

What precautions should I take when dealing with the current tenants?

There will be a few other costs due to the distance, but I will be taking every precaution that the property will still cash flow at least $100.I'm confident, more confident than anybody my age putting their money into Index funds.

Any Precautions/hesitation that you guys have to this?

Which is why we are trying to do what I described above.But if it may have some re precautions to do what we are trying to do, just like what @Don Konipol mentioned, I guess it was a good idea to ask this question in here.

Rehab projects can offer significant gains, but they can also present unforeseen costs if you do not take the right precautions.

What other precautions or known 'pitfalls' should we be aware of? 

You should take every precaution legally to protect your family members money.