I'd appreciate the knowledge.

@Reginald Willhite first and foremost seek out a very knowledgeable mortgage broker to make sure the programs you think you can use are actually available.

@Judah Smith a lot of people are on BP to not only learn from others but also to share their knowledge and experience with others. 

Some specific state knowledge is helpful such as CA where you have the added burden of the Franchise Tax Board documentation requirements. 

The extra lot space that I have sits on a abandoned rail corridor that is in the process of being converted to a bike/walking trail and connected to a network of almost 40 miles of trails which is bringing people to the city from all over. 

Taking an actual distribution and properly recording that and doing withholding may be extra work, but that is a "clean" event as opposed to defaulting on the loan.

I have knowledge on wholesaling so far still probably could learn more about it but I also want to learn about other fields in the real estate industry.

It's completely feasible to achieve enormous levels of success investing out of state - but keep in mind that when you get involved in a deal that is not local you're losing some control, and your visibility & oversight of the deal is dramatically diminished.Unless you're buying a turn key or getting into a PPM or some other commercial investment vehicle with a group that is managed and regulated, you may want to consider keeping it local until you've gained the experience and knowledge, and developed the out of state relationships necessary to be successful from a distance. 

However, I'm wondering if I am missing an opportunity here, if anyone has knowledge of the potential pitfalls, or if there is anything that could be misconstrued into a legal issue.

Also, make sure you put in a clause that there is no sub leasing.. bad things can happen if your tenant decides to rent out the apt without your knowledge