Small-scale investors are not necessarily local. It's anecdata, but I know quite a few Seattle-area folks who bought rental houses in LCOL/MCOL areas over the l

Small-scale investors are not necessarily local. It's anecdata, but I know quite a few Seattle-area folks who bought rental houses in LCOL/MCOL areas over the last several years because the local market was too expensive. They still pay property taxes, though, and most property managers are local-ish.