With in 5-7 years I would like to be able to financially stable, that is to say that at this point I can cover all living expenses as well as be able to be able to purchase a car, or new appliances, or cover medical bills, all without having to worry about if I'll enough money to eat that week. 

Most of the middle class falls into the trap of two working parents, long time and energy sucking commutes, always stressed for time, buying stuff to keep up, eating out frequently, etc. if you are truly middle class the only thing preventing you from wealth is you (exceptions for major illness or other uncontrollable life events).

Those ASU college kids you're going to be looking to rent for will do damage to your place, and they typically turn over every year, so that will eat into your cash flow.

However, when it comes  to all the red-tape involved with retirement accounts, better safe than sorry is the best motto.So the moral of the story is to ensure that you don't eat up 90% of your IRA funds on a down payment and closing costs.

Account Closed - I am a very simple man when it comes to eating.

The mortgage eats up nearly all the rental income leaving about $200.  

If a new tenant comes in every 18 months, that eats away on a few months of cash flow...Is they typical?

The maintenance, repairs, and vacancy can eat up a lot of your cash flow. 

you EAT the decisions of the PM and have liability for the results.With absentee ownership, you may have no choice but to use a PM, but 19yrs being 2hrs , 120 miles away, I created a local team to do the heavy lifting and I did the screening and decision making - - seems to have worked out well (see profile).

How do you proceed when an out-of-state owner says they want to sell, but that capital gains would eat up their gains?