Out of state properties have their own set of problems. You are at the mercy of the property manager who may or may not be worthwhile. I have gone through 3 of them in Miss. alone. You don’t know if requested repairs are needed and if the price is right. You should at least be involved in the choice of tenants and ask to see the paperwork so you have a say in whether you think the prospective tenant will pay. I try to always do lease options and that is another set of problems- trying to get the manager to understand what you are doing.
This is a great article. According to realtytrac (who is our guest speaker on Oct 17th, certain cities afford an above average return on your investment. This is because the rents are high in relation to the prices and the demand is there. Just remember the higher the risk, the better the reward better be.
That being said, here is the article about the best places for rentals.
click here to read it.