And, do those provide a higher overall return than real estate rentals? 

Since I've never dealt with previous tenants, I'm looking for some advice on the best way to move forward...Unit 1:- Studio Apt- I did a walkthrough last week and spoke to the tenant; he mentioned the only issues he's had in the past year and half is that the cold comes through the windows- He and the owner both confirmed that the tenant is month to month and paying $750, but so far the owner has not provided a lease.- The owner did provide proof of payment, and rent is confirmed $750, but always a few days late...Unit 2:- 1 BR- There was a language barrier, she didn't speak english, and I think she was afraid to open the door so I didn't get to tour it.

Build relationships and provide value!

Hey Josh, BP resources are a great inexpensive way that provide more values than 99% of courses.

I'm not an accountant, so could be wrong, but I think you're confused because it sounds like you're thinking that your cash-out refis somehow provided you with tax-free profit for the amounts you pulled out?  

Please feel free provide your thoughts and advise.Thanks in Advance!

On the other hand, investing outside of your state may provide you access to markets or possibilities that might be more advantageous.

I don't think it will provide any safeguards for damage or liability etc.  

More specifically if you own multiple investment properties and they show up on your Schedule E do you need to provide detailed information on each of the properties/including lease agreements etc?

I'd ask for the higher limits and honestly I'd ask for the highest he can provide on the policy.