Inversely, if I love City Y, you bet I want to invest there, and spend time checking in on my property and enjoying and learning about the city I have money in.  

When it sells it will likely also be the closure of my business, and so I will be relying initially almost entirely on the rent that I would generate from whatever I end up with in my 1031 exchange, so income versus other ways to gain in real estate is my initial priority.In thinking about it and looking at options and poking around for the last couple of years, I am strongly leaning towards multi-family.

So in the example you gave with knowing the rents is now $950 versus $995, I plugged in what you provided as it's hard to say yes I would or wouldn't.

I would be willing to bet the majority of those who are very successful on BP all live in modest homes with a lot of equity, and drive modest cars most probably paid cash, that they can easily afford. 

I still think that staying local is a better bet for all the reasons previously mentioned, but if you ultimately disagree and invest out of state it is a better model IMO.

Also, I feel that there is more incentive to do well when you are dealing with a friends' finances, versus someone you've never met before. 

Looking for advice on which lender is offering the better deal.  Purchasing a HUD Home.  One lender offering 5% with zero points but states they can't close it in 30 days. Another lender offers 5.1% with 1/2 point but...

It's a safe bet with little risk (minimal rehab).

Thank you both for taking the time on replying to my post, I will definitively get the book that you suggested and get deeper into the rehab stuff, I bet is not that easy but after doing it the first time Im sure I will learn a lot!

Would contacting an agent be the best bet for this?