I own a few rentals out of state. They’re in a low-income area. Actually, they’re some of the cheapest places in a middle class area, so, while my tenants are mostly fairly low-income, the surrounding area is not too bad.

In any case, the price/rent ratios and the eviction laws there are good enough that, even with a certain (probably relatively high) percentage of bad tenants, it’s still more profitable than in better areas. Certainly far more profitable than anything I’ve seen in Southern California. I have a management company do everything, so all I do is collect what’s left over after the management fees, eviction costs, clean up costs, repairs, etc. Really no hassle at all.

Of course, I’ve only had them since August 2012, so not totally sure yet how this will work out long term. And the appreciation potential is quite low on these particular properties.