However, some of the best cash-flowing markets on paper can also come with the biggest management challenges.

If you have vacancy or in need of a large repair, will you have the cash to also manage that? 

I'm a Realtor, property manager, and investor in San Angelo.

@Tyler Garza With my CFO clients, I generally use 8% vacancy and 25%-35% operating expenses depending on if they are self-managing or using a PMC. 

That's where good people live, and good people make good tenants.But before you put money down on a house, I would find a quality property manager.

@Bri Hall I am A managing partner at a company that facilitates full-scale flipping, lending, development and portfolio acquisition amongst other things.

We will certainly manage the drawdown from those funds to account for tax consequences as best we can.I appreciate the calls for diversification and I get that cash flow is a tougher to secure with interest rates where they are.

I am from out of state so wanted less maintenance in the short term while I build my portfolio and grow to the point where I am comfortable hiring a manager!   

Management fee, add to your situation. 

My top recommendation is to begin by contacting property management companies in each target area.