Out-of-state investing is hard for first-timers and when you add on more things like Section 8, need of a PM, maybe no plans to be there, HOA requirements and potential assessments if it's a condo or townhouse, it's a lot to bite off for a first one.

If you haven't developed before, there is a lot to do there which could be a steep learning curve. 

Hi all,I am in the process of furnishing my first rental and boy is it a lot to think about!

@Lahiru S Hettiarachchi Gamage. it looks like @Andrew Postell gave you a LOT to chew on. 

I appreciate J Scott sharing with us your split it does a lot to help people think about this dillema to license or not to.

I will say that i get very anxious when I read folks recommending folks put their hard earned down payments in lower quality areas with low cash flow and equally low appreciation where the investor is far away and has zero control over their investment  it makes zero sense to me   I have a lot to learn still but I always analyze my assets and try to make the wisest choice and sometimes that choice is doing nothing..

That real estate license is a virtual lotto ticket for the Investing Realtor®.  

It doesn't punish you based on how you finance the deal.To add financing in, you want two numbers: cash flow and cash on cash:Cash flow = NOI - Debt ServiceCash on Cash = Cash Flow / Cash Into Deal You can also look at debt service ratios, which banks look at a lot to see what ratio your income is compared to your debt service (most banks look for at least a 1.2):Debt Service Ratio: NOI / Annual Debt Service

take a lot in low value areas where houses cost less than replacement cost.. we know those areas.. land is valueless has negative value.take Palo Alto CA and a lot will run you 2 mllion for a 6k sq ft lot to build a sfr.. and the SFR will cost you maybe 750k to build maybe a million its inverse.. everything I build  the lots are usually 1/2 to 1/4 of the total package in value..

Bill, thank you for the response and you gave me a lot to look into.