It really depends on many factors .

Cap rate doesn't factor in one of your biggest costs, the cost of capital.

It does make things easier sometimes, but don't let that be a factor that stops you from wholesaling out of your home town. 

@Aman Shahi I think one of the most important factors in OOS investing is your local team where you want to invest. 

Retail cap rates are dramatically higher because loans cost more (on top of other factors).  

It could also be that you are not analyzing the properties correctly and adding too many factors into the monthly expenses. 

They type of stain determines the best treatment.

What are the important factors?

Also, if you are seeking to become a passive investor and want favorable tax treatment upon the sale, consider becoming LP in an investment that offers Bonus Depreciation. 

Refi and rent will allow you access to some capital (and only makes sense if you can reinvest it) while also getting some monthly cash flow.Other factors: do you think the property will continue to appreciate, and at what rate?