Ultimately if we go down SFH route (and not rely on STR or MTR), it seems that we would have to buy multiple properties around median price point where the appreciation is most expected?

@Jared FisherRecommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

The inspection showed more issues than we expected but the seller wasn't willing to negotiate so we cancelled in the due diligence period.

I did file a large claim a few years ago for a broken HVAC.

The fresh perspective from someone outside of my network is crucial, that way my expectations can be closer to reality if I decide to reach out to new contacts for this opportunity. 

I would need to consult tax consultant for this however I expect to reduce my effective costs by ~$1,495/month (based on a 32% tax bracket).2.

If you do, you should expect a very aggressive challenge by the IRS.At $350K of combined value it might be worth the cost to get a segregation study if you intend to keep these a long time.

Landlord will promptly respond to Tenant request for repairs but will not be monetarily responsible for tenant disruptions or inconveniences during habitable times of repairs or tenant/guest injuries incurred in or around obvious areas of maintenance, repairs, or construction.We are more converned about them expecting us to pay for their losses rather than getting recouped for damages to our property. 

Was the process smooth, and did the property meet your expectations?

But I think it's about expectations.