Watch Your Money: Keep it Close

Buy an investment property nearby.  Don't make the mistake of buying investment property too far away.  Buy something you can keep an eye on and get to at the drop of a hat.  Hurricane Irene just blew through our area.  In addition to the whipping wind and torrential rain, there was a water main break at the corner of two of our properties.  We are three blocks away, therefore we were able to keep up with the basement flooding.  Had we not been around we might have lost boilers and water heaters in both houses.  We were lucky the power didn't go out.  But we could have handled that too. You need to be near your money and understand your investments.  It's good to seek expert advice for certain things, but never relinquish  decision making control to anyone else.  If your property is far away, you will need a manager who expects to be paid. But when it comes to repairs, use your own people and pay them directly.
I've heard too many stories of real estate managers ripping off investors with repairs to ever be comfortable allowing a manager to spend money on my property. Know the area where you are going to invest.  I know someone living in New York City who bought investment properties in Las Vegas.  She bought three properties, which is also too many.  Don't put all your eggs in one basket.  Anyway, it's worked out pretty well for her except that she has always had problems with one property.  She is just too far away to take care of things in a timely manner.  It's a problem I never want to have.