There is the inconvenience factor but it might be cheaper for you and your friends as well.

Additionally, are there any other factors I should be considering when purchasing a duplex or triplex?

Quote from @Catherine Ding: My PM company is offering to do it for a high fee of $100/month so I'm trying to find alternative options.

I wouldn't recommend setting up an LLC out of state if you are buying in Tennessee unless your tax advisor is looking to help you on strategy.. but from a numbers standpoint, it really doesn't make sense when you start adding up on all of the annual LLC reporting fees from different states and then it starts cutting into your cashflow.

If some landlords are requiring them to pay application fees before they even know they want a rental versus ones that don't which do you think they will choose.

Or, when the buyer sues everyone for undisclosed defects they have to pay the listing agent's attorneys fees, etc. 

I found a PM called Hostex.io for the STR so far so good I could not believe the very low annual fee which was less than $90 a year.

I understand there are some other factors I glossed over like gaining the approval of the first seller to switch collateral and the lien in second position, gaining approval of the second seller to put a second position lien below the big loan, and scheduling the sale of the first property to coincide with the purchase of the second property.

This will help you understand the qualifying requirements, key factors to consider when purchasing, and how to assess whether a property might be a good investment at first glance.

Any surprises in terms/fees?