WA state is trying to pass a 5% cap.

Another point to add—They state in the proposal that the investors are contractually guaranteed a 10+% return on the investment.

Knowing construction/remodeling, local codes, contractor licensing laws, state laws, project management, tax codes/laws, understanding market conditions and having a healthy amount of liquidity are but a few.Flipping is a business and subsequently requires one to be business savvy, especially in California. 

Unless your VERY experienced and knowledgeable, an attorney specializing in real property in the state the property is located is is a necessity, title insurance is almost always needed.  

It's your best bet in getting some insight into the property and you may be able to help them in the process.Understand your state's foreclosure laws and what filings are required to start the process.  

I am wanting to buy my first rental but not sure if starting out of state is a good idea since I'm new.

There are many avenues to exhaust including here, your local REIA and your state multi housing association prior to engaging a paid coach.

I'm not sure what fundamentals anyone from out of state sees in the Twin Cities that would drive them to invest in the market.

Following the advice of several of the books I have done some basic investigating in different markets out of state, as landlord laws are not very friendly in OR and houses are more costly than other areas I’ve looked at.The markets I’m considering are Cleveland, OH; Cincinnati, OH and Raleigh/Durham, NC.

I have a C-corp with several LLCs as I do wholesaling, flipping and landlording in multiple states.