However, what if you prefer simplicity, limited risk, and are living off of the income? 

You minimize your risk of violating Fair Housing Law or compliance issues using an experienced property manager.3.

The point is that if you ever find yourself involved in an eviction or a contested deposit, you don't want anything in your lease or that you've charged for that will make you look foolish in front of a judge.

You’re risking other people’s money and you also need to get burned if it goes bad.  

Buying OOS just adds several layers of risk for most people and most places. 

Are there risks or hidden costs I might not be considering?

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

When people take advice on here, they need to consider all things involved and not run with one perspective.

. - New construction will be comped against other new construction - Start out with enough comps to justify the price point- keep the area tight to consolidate the risk vs building one or two in different parts of the same neighborhood. 

Been hesitant to pull money out of risk free 5% yield + stock market for a rental property but at some point hope to do so when it feels like it makes sense.