We chose to go with a PM, so we could focus more on new investment opportunities and minimize impact on our day job. 

As a first-time house hacker you want to maximize your revenue and minimize your living space to make the most.Also, there are 2+1 units which are 2 legal units and a 3rd boarder unit (either in the basement or the attic).

If there are any interruptions or technical difficulties, tenants will likely contact you for help, adding more work for you.

Yes do what you can to minimize taxes but that’s not the primary driver.

IE is it just effectively a secured parking lot that renters can come and go as they please with minimal oversight? 

My headaches have been minimal thus far.However, most important for you is to look for a base hit, not a home run.

But, could I minimize risk of renter defaulting on payments for the 2nd property by turning this property into a section 8 housing unit with guaranteed income from the gov't?

.**** At some point, future, I think I will want most all properties paid off so I can have great flow with minimal stress and maintenance numbers but kinda feel growth phase is still smartest as of now. 

Jumping in is very nerve racking and I'm trying everything I can to minimize my risk, but I guess I can only do some much planning before jumping right in

Most of my units are 1 / 1 apartments of similar configuration which has made it a lot easier to slot in new tenants with minimal gaps in the schedule.