I've seen it happens to foreigners, not to US citizens.

Please don't prevent other readers to take advantage of the awesome realSecondly, billions of dollars have been invested by foreigners in Mexican pre-construction real estate and only a tiny fraction has had issues.

I think the most important thing for an out of state investor is to find a reliable and trust worthy property manager.I would recommend short listing couple of property managers in the area you are targeting and you can ask the following questions:1) How many foreign investors they manage properties for?

Cara,Thanks for your response, and I think that your point about timing and availability of information is well taken, but I find it hard to believe that the concepts of leverage and investing and rental properties were completely foreign to the populous in the 90's. 

There are many "foreign investors" investing in America.

Here's what I am looking for:1) The top 3 highest rental yield areas to narrow my focus in on2) Lenders who will lend based on foreign income at rates which are comparable to US residents

Jon never paid any money to me as a contractor or towards the rehab....not a dime though it's been stated differently here.With Avon, as with Jay's deal, we planned on renovating, renting and selling it off to a foreign buyer.  

It's been quite a ride and none of it would have been possible without BiggerPockets and the people they've allowed me to connect with.I'm now working on a book about investing for foreigners.

Lastly, regarding an influx of foreign buyers, New York and London also enjoy the same sort of trophy buyer that is looking for a safe haven for their money.

I strongly believe you could make a good deal in joining a foreign market since the criteria you use for evaluating a deal are likely to be different than the local people due to the cultural differences.