Depends what the city says.

Also it depends a lot on what your money is doing for you in other investments.

I'm sure the answer is "it depends", so I was hoping to get some insight into the strategies used by the community. 

The pendulum is in the exact opposite phase right now, for everything that didn't need to be verified at all in 2006, now it needs to be verified 3 different ways (80% of the paperwork required you actually didn't even see or provide because it was on the back end, a typical printed loan file is currently about 4 inches thick, compliance costs to originate a FNMA mortgage are about $4000 to $8000 depending on who you ask).

You learn something new every day :) I think this really depends on your timeline and goals!

It depends on your goals.

Investing out of state is significantly more complex than investing local...you'll be depending on someone to be your eyes and ears...this typically creates a huge conflict when you enter an industry where half the agents can't find their *** with both hands and the other half are commission driven...you're really looking for the 1% that has well established tools for long-distance investing. 

As Nathan mentioned in his post, the monthly income could potentially be something you don't always stick with depending on how well the tenant fits into your other requirements.

@Patrick PhilipThat depends on a few but very important factors. 

It depends on many factors: net worth, risk tolerance, future goals.