In response to iaflyer's question in the "It Passed" thread:

Personally I searched mainly in the town I live in. I peeked at other cities, but realized that I had no idea what I was looking at. I didn't know the neighborhoods. It wouldn't necessarily be bad to look outside of your local area, but it does require a lot more work just to understand what that market is like.

As far as purchasing a property with or without tenants, it depends. If you are looking for immediate cash flow, you would need tenants in place. However, you may be interested in redevelopment, in which case you would want a completely vacant property. In the case of my current property, I bought it 65% occupied because I got it for a lower price, hoping that someday I would be able to fill it up (which I did) and sell it for a massive profit:

Property value=NOI/Cap Rate

Maybe you find an apartment building that you want to renovate so you can attract higher quality tenants and raise the rent thus increasing NOI. You can do that over time as tenants move out.

It all depends on what your game plan is. Remember, you make your money when you buy the property. So make sure the property you buy aligns with your exit strategy.