If you get over-market rates, you are less likely to renew and will have difficulty finding tenants.

Finding the right property: Cash flow properties are not always easy to find, and buyers may have to look in different areas or markets to find the right property that generates positive cash flow.Determining accurate cash flow projections: It can be challenging to accurately predict cash flow for a property, as it can be affected by a variety of factors such as occupancy rates, operating expenses, and local market conditions.Financing: Some buyers may have difficulty getting financing for cash flow properties, as they may not meet the traditional criteria used by lenders.Managing the property: Cash flow properties often require a lot of work to maintain, and buyers may not have the time or resources to manage the property properly.Understanding the market: It’s important for buyers to have a good understanding of the local real estate market, in order to identify areas with potential for positive cash flow.Dealing with tenants: Cash flow properties often come with tenants, and buyers may have to deal with issues such as lease agreements, rent collection, and maintenance requests.

How difficult is it to own a rental property (condo or multi-family) in a different state?

Its a combination of dozens of factors weighing risk premiums, asset growth, possible tenant difficulty, future development of trendy restraunts and bars, schools (which is more a suburban driving factor than in DC proper) etc.So if you like Hillcrest by all means buy there.

Even though inventory is tight if it is on a busy thoroughfare he may have difficulty getting a tenant or at least a good tenant.

I'm sorry you're having difficulties with the site.

It certainly won't be appreciating (much, if any), and I may have difficulty selling the property in the future.Sacrificing some cash flow, I can find properties in more desirable parts of town with stronger resale values, higher rents, and more stable tenants.Appreciate the insight everyone, thank you.

It is possible to do this business without money or credit but it is extremely difficult.  I

Recently, past few years, issues of title conveyances, circumventing foreclosure laws, unrecorded deeds have been added to the other difficulties with installment contracts, insurance, the due on sale clause with underlying mortgages (I bet that land is free and clear) and the ability to place future liens can be an issue.You are not in title under a CFD, therefore you can not encumber the property, can't use it for financing.

It will also limit the pool of buyers because of the difficulty in getting low interest financing.Just a guess.Stephanie