I have a small two unit property in a bad part of Brooklyn.

The owner said they are bad at paperwork and both tenants are month-to-month.What should be included in our purchase agreement?

ABC Management may have 30 years experience, proven systems, contractor relationships, and other services you can't begin to provide.If you jump into property management with zero education and experience, there is a high probability you will fail and you will give the profession a bad name at the same time.

first you have to decide what you want to do in the note business.. what most of the responses are talking about is buying bad debt.. and 2nds at that which this is the most risky and the most work..if your looking for work and risk and job then that kind of note investing is for you.If your looking for Passive income with no work and Limited risk then you simply need to align with a great HML who takes on private clients or those that understand where performing notes are generated.. we have done over 1700 performing notes for clients that last 5 years and really don't advertise at all. simply because once you get conservative investors in your program it just feeds itself.. deal flow is the key right now.. most have a hard time finding quality. finding defaulted seconds is easy.. and the most risky. 

You are under time constraints to do a 1031, and it can lead to you doing  bad deals.

My question is, is it a bad idea to invest out of my area? 

This tenant is extremely high maintenance and everything is a “health issue” because she has bad allergies she says but she has two cats and her apartment is a mess with cat pee and vomit everywhere.

If so, was it good or bad and how did it work out?

In my experience, most small GCs and contractors are bad at estimating.

Plus she needs a yard (she’s bad with other dogs so dog parks are not fun)