I'm a passive investor and these properties are in a different state than I reside in so I'm not there in person often. 

Whether it’s understanding the new legislation or tackling the day-to-day management of your property, it’s worth having a conversation to see what might work best for you.

I personally leverage, but have a large rainy day fund. 

Personally, I'd start looking in markets you're familiar with, similar to what you said in your post.

I'm not sure about the potential for liability in a wrongful death suit if somebody is injured or killed in the fire, but definitely would not want to find out personally, nor would I want to live with that on my conscience.  

However, I think for the average person this is probably not true. 

It's a matter of finding the one where the weaknesses are in areas that aren't relevant to your needs and/or don't aggravate your personal pet peeves. 

The question is mostly a personal financial planning question and it depends on your preference and what balance of risk and access you'd like and would be comfortable with.

They will schedule an inspection to verify that the second bedroom does in fact exist in the apartment.I am not sure, I believe it’s because this apartment is only being rented by one person on the lease.  

That is my personal go to.