If you have ever considered purchasing a single family residence for the purpose of renting, you have more than likely heard from others how profitable it can be. But investing in real estate can also be very scary. As a real estate investor and a property manager operating in the northeastern Ohio cities of Cleveland, Akron, Canton and Youngstown, I have found there two variables under your control which impact profits more than others. The first variable, your initial investment, is something everyone considers and I won’t spend too much time discussing since everyone seems to understand the “buy low” concept. But the second variable, your property management expenses, is generally underestimated by numerous investors.

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If you live in an area where the real estate prices of investment properties are well above the median, say like California, Florida or Massachusetts, you may have thought about investing in real estate in other areas of the country. Areas such as Cleveland, OH where the median home value is below the national average, may provide you with excellent opportunities to expand your portfolio with profitable rental properties at a significant discount compared to where you live. However, before you invest in out of town deals, you should consider what it means to manage property in a place different from where you live. As an out of town landlord you will face the following issues:

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