A lot of people tend to mingle these things when they talk about "break even" or "cap rate", but that leads to a lot of confusion.Let's use some real numbers which may be easier to understand. 

Being that I get taxed at a higher rate for wage earnings then i do for capital gains I actually take home more for way less work.

You can generally get the best terms (max leverage and best rates) on an owner-occupied house.

Do a bit of digging, and you can find single-families in suburbs like Decatur or Meridianville that appreciate at rates above the statewide and nationwide average and hit the 1% rule at the same time.One caveat, though, is that most rentals in Huntsville proper probably aren’t going to deliver the cash flow you’re looking for.

A fair rate for solid management typically falls between 20-25%.Superhost or High Review Ratings Matter – Ask if the properties they manage consistently earn Superhost status or maintain high guest ratings.Communication & Accountability – A good property manager should be responsive and proactive.

Currently living in our home and plan on renting to keep low interest rate while we house hack a duplex to start our investing in real estate.  

They are nearing retirement and have children in school.

Some areas still offer strong appreciation potential along with steady cash flow, and when working with trusted lenders, you can find competitive rates in places like Memphis, Little Rock, and Oklahoma City, which tend to perform well on both fronts.

However, some investors don't mind this strategy if they prefer not to put a lot of liquid in up front and plan to refi out within a few years of closing (which seems to be a great option with the talks of the FED reducing interest rates this year).It really comes down to investing in a growing market, in a good neighborhood & building a great team to support you.

Admittedly, my properties were mostly in the path of gentrification, so overtime was moving effectively getting rid of my section 8 tenants and going with better qualified, higher rent paying market rate tenants.