I wouldn't worry too much about both issues you're umming and urring about - and definitely wouldn't let them dictate my investment strategy - for the following reasons -1) Investing out of city, state or country is only an issue if you're a hands-on, micro-managing fanatic, OR if you've got a major advantage in being hands-on in any particular field (for example, if you can do renos yourself for a fraction of the price it'd cost to outsource them).

Fair enough.I don't think everyone wants to rent a place in the country for their guns and dogs.

Another corporate form may be more appropriate for you and you may not even need to go there being out of country certainly makes it more difficult to hold your feet to any fire.

I would like more than anything to be using your service "effectively like the thousands of other property managers across the country." 

He'll do you right, but entry is expensive.If you want to start smaller in Uruguay with land you own in a country that is far less complex, and a manager who is small enough to look out for you let me know.  

We self-manage and therefore focus on class A properties that we can manage all over the country.

The company you referred to does have a higher sale price to rent ratio but they have the best team in the country for their business model and that is why investors are willing to pay that price.  

In all honesty I don't know of another area in the country were we could have pulled this off. 

Except this time, the leverage is much higher, most other countries economies are struggling worse than the us, they're handing out 3% loans again, AND they took the punch bowl away.

It is IMHO you buy a primary in SF at all cost.. which you did.you may want to look out in the central valley as Joe suggests.. there are also rental markets up in Wine country specifically Ukiah area that could be good.Also you may want to consider the Oregon Market.. its a tweener  vis a vi CA and mid west or deep south..