The market here is a little challenging to find deals right now, but even with that said, I don't think an out of state deal is the best one to cut your teeth on.Asking a little differently - would you buy the house in MO if you were in CO and looking for a rental?

You need insurance, too, of course, and you need to require your contractor to have insurance and be bonded.

I have researched many investment options including the usual - stocks, bonds, and commodities.

David if you fly to the area see what other buildings in the close proximity are doing.If all include utilities tenants for the area will be conditioned to it and go down the street if you try to sub meter out.If most buildings have been sub metered for the area then it might make sense.As far as redevelopment you have to look at future use.Maybe the city will allow your current zoning say for example of 100 units to be changed to a more dense project of 400 units on the same property.By the city offering tax credits or bonds you will add new product with a higher assessment to improve the look of the area plus put more money into the cities budget.I talk to council reps for their districts in my states.What's on their mind is how to balance the budget and how to improve their district with quality and more money coming in.At some point the old units will be torn down even if performing and regenerate.Every area regenerates.It might take 50,60 years etc. but it will.This is why in high density cities where no more land is the buildings will be torn down and built new again.No more space is there so you have to go up in size and a more efficient design.When I look at a property I think of all the possible exit strategies with it and what it could become.If the location is great developers will pay a premium to tear down and rebuild new.When the boom happened everything was expanding and banks and developers had the "build it anywhere and it will not fail" mentality.Now that they have been stung hard with banks having bad loans and developers and corporate companies having failed projects or failed locations selection is the key.Development will come back but it will be much more selective.

Individual real estate properties aren't as liquid as publicly traded investments such as stocks and bonds.

Many times I can slip this work by the city and all is good but so many times it has come back to bite me and certain cities are not happy lol.Where is the best place to go to get bonded and insured so I can pull a permit now and then?

If it was me, I would take money out of stocks and bonds to use for a 20% down payment on a more expensive property that cash flowed better.

I'm simply betting on the US real estate market instead of the US stock/bond market.  

Here's the secret:Ask the advisory title officer what you can offer to make them feel comfortable with underwriting the file.This may be indemnification or a surety bond. 

Trying to be a day trader in notes can also require a license, residential notes are not stocks or corporate/government bonds, they are "private" unilateral finance contracts between a lender and a borrower.