Property management fees are only 10%. And I’m not the only one who’s been able to make an out-of-state property cash flow. You just have to find the properties that will cash flow and avoid the ones that don’t. With the Internet and cell phone, you don’t really have to travel back and forth to that property that often.
I’ve mentioned before that I have a south carolina property that cash flows at about $300/mo. (bought it for $230k). It has a property management fee of 8%.
Every property is different, but if you find a good property, analyze the numbers, some will cash flow, some will not.
Obviously everything in California does not cash flow. However, that is not true in all locations.
