And it appears they look good based on what you know and/or you've been told.....which leads to the next point.Do your own homework on both ARV and rehab costs. 

The proverb of old says "Whoever walks in integrity walks securely, but he who makes his ways crooked will be found out", it is as applicable today as it was thousands of years ago.I think Brian is correct, the reason many get in trouble because they read all of the misinformation on the web, there are some yea-sayers out-there (even here on BP, but most of the times they get corrected) who will tell you "yes, you can do this" and lead others into trouble.

Yes, parts of New Jersey are expensive, however those locations also generate higher rental income.

Once you think the numbers work then start calling people that are running ads and one conversation Should lead to another and hopefully you'll find enough reasons to fly out and meet some new contacts.Account Closed is correct there's a broad spectrum of deals to buy from a total gut job to a full on turn key program.I'd definitely stay away from fix and flips in the beginning and look at light rental grade rehabbs to full on turn key.The most important aspect of out of state rentals is the property manager, for this reason I finally decided to partner with a management company in Michigan to help protect mine and my clients assets.Ohio, Michigan and Missouri are still under valued and offering good returns.The detailed kind of information you're after is more of a phone or sit down conversation.

We have the strictest lead paint laws in the country.  

I work with and get to know local bankers, insurance agents, etc and they might even give me leads-it has happened!

I would say I am somewhat educated on some of the differences/ requirements when going 5+ units and also can strongly agree on the significant CA property appreciation.I'm curious as to what lead you to really focusing on the Poway, Escondido, & Rancho Bernardo markets?

My main focus right now is rental property; something to generate some steady income.

Once i started my marketing and leads started to pour in, I quickly realized that there is PLENTY of opportunity out there, you just have to be willing to put in the work to capitalize on them. 

I would use that money to fund BRRRR deals to turn into rentals or rehabs to generate cash for rentals.