i took a stab at it 10 years ago with a 4-plex in las vegas. my plan was to pick up several other units and retire early but with me living in california i went through 3 property managers in 4 years. they were nickel and diming me to death because i had no controll being so far away. i ended up selling it for a GAIN of 5K, i have just been sitting on my cash and adding to it for the past 10 years.

now with this big downturn in the housing i began to look at investment property once again but this time in my own state. i found los banos, only 45 miles away from me, houses that im picking up peaked out at $350K and im snagging them for $70-90K. ive picked up 4 so far this year and have since been laid off, it fell perfectly into my hands because now im collecting unemployment and the monthly rental income. im making 11-13% return on my investment and figure to recover my full investment within 8 or 9 years. being only 45 miles away i can keep tabs on the property manager and he knows it.

the moral of my story is do not invest out of area.