Also have reached out to tons of agents I have connections with already and not having much luck, so I want to focus on generating off market leads.It's my goal to get really proficient at cold calling.

While I secured the initial financing for the property, I have two other partners/groupings (a total of 6 people) that are contributing to the closing. 

You’re right, though, that you’re unlikely to generate much cash flow, if at all, if you invest in your home state.One option would be to look out of state.

We plan to go the most cost-effective route initially, and then adjust later as we build more experience/reserves.Thanks again for all the great feedback!

Initially they balked, but eventually they relented* We kept our inspection contingency to void (not negotiate), and included a financing contingencyHow did you finance this deal?

Details here: https://www.biggerpockets.com/forums/521/topics/1214849-dmv-...I recommend checking them all out initially, I bet you'll have a lot of fun networking!

If you want to generate revenue, you have to learn to be more effective.

Since the interest rate is already high, adding to it won’t drastically change your overall costs and will free up the liquidity you need for the new investment without affecting the low-rate financing on your multifamily property.Using the hard money loan to close on the new property could work well, especially if the property generates the $6,000/month you expect.

And maybe in 20 years when the property sells it could be taxed differently, but not sure since it was initially a primary home. 

Long-term rentals offer diversification, learning experience, and lower returns but may generate lower returns.