i suspect you'll say "too expensive," but out of state comes with challenges too, and getting crushed by deferred maintenance and overpriced contractors is actually very expensive.memphis in particular - to be successful there, you'll need a team and a strategy, not just interest solely because it's "cheap" to buy there. 

Leveraging a HELOC to fund the down payment and construction can be a smart move, particularly if you can lock in a favorable rate on the HELOC.

Net income is calculated after accounting for deductible expenses like mortgage interest, repairs, and depreciation.Depreciation is particularly important because it’s a non-cash expense—it’s a paper expense that reduces your taxable income but doesn’t actually require you to spend cash out of pocket.

This is particularly true because you don't have turnover expenses in there either -- which you will need.

Are there any particular strategies or tips you can share to maximize returns while keeping operational expenses manageable?

I agree several of these could be deal breakers depending on your particular investment criteria. 

Taking that step from theory to practice can feel daunting, but you've already laid a strong foundation by educating yourself.I’ve been working with real estate investors, particularly in the Indianapolis area, helping them find and invest in multi-family properties.

Don't be afraid to negotiate, particularly if you have a lot of rentals.4.

It depends on what work is being done and the rules of the particular insurance company/policy. 

But TBH I focus on the rents that particular property brings in.