I am in CA and help clients buy out of state, cash positive rentals.  

As long as the clients are represent by good agents your good.

If you have a difficult tenant that is not happy you can either tell them you will let them out of their lease after the work is completed or simply tell them to pound salt.

Very difficult in Canada or system of borrowing is very different from those of our American counterparts.Very difficult in Canada or system of borrowing is very different from those of our American counterparts.For starters you will need to pay 5 to 6% interest and in some cases even more..Secondly definitely will need to go into private borrowing I'm having the exact same problem here in Toronto and this is the information that I have so far

@Scott Carrillo I do that in Cleveland: $1K to find, research and buy a property on Sheriff sale, $500 for repeating clients who I'm managing the property.Rehab usually takes 10% or $2K whichever higher.

College rentals are potentially more profitable but more difficult to manage.

But prices have sky-rocketed in the last few years so it has become very difficult to find deals that make sense.Once i finish the 2 apartments I recently purchased and rent it out i will probably start looking at different more affordable areas, but probably around greater Lisbon.I think investing in university towns is a great strategy, around hospitals and stations are other good areas to focus on. 

I have seen them write that loan for several of my clients.

The existing mortgage stays in place and the buyer takes over the payments and the deed is transferred to the buyer.The most common stipulation found in a “subject-to” contract is that of the buyer completing a home inspection.However, with home sales becoming more difficult and find the need to sell their house for far less, buyers are harder to find and those that make offers are not able to complete the purchase because they face difficult lending criteria.This is where subject-to an existing mortgage comes in, what this means is that we the buyer of the home takes over the title to the property, but the seller retains the mortgage itself.

Bruce,I think you are absolutely right with your assessment of Bay Area market.At the current price levels, it will be very difficult to find anything that makes sense.