Out of state real estate investing - good idea or not?

RE is always a good investment provided there is minimal negative cash flow. In other words if your rental income on the investment just covers the mortgage and property taxes than it's a good deal otherwise stear clear. Regardless of tax benefits money out of pocket is money out of pocket. Also don't get fancy thinking I can milk it for a few years by using 0 down and an ARM cause you'll end up loosing $$$.