Some underwriters may not care or ask, while others may scrutinize the situation.

Newbies don't care about any of this.Even if they say they do, their actions speak louder than their words!

I think super detailed stuff like tax law is interesting, and I have plenty of experience with 1031s and SFR investing, but a Turnkey operator on a forum shouldn't be your tax advisor ;) Sorry to raise your hopes and then dash them - I will speak more carefully in future.All the best,Clayton

Inflated Housing MarketYou mentioned the market is inflated—this is important to weigh carefully.

And out of that 5% there aren't really many options that are in solid locations and well taken care of (or at the very least built as multi family).

Once you've got a handle on being a landlord, then you can explore out-of-state opportunities with more confidence.Whatever you decide, make sure to do thorough due diligence, run your numbers carefully, and don't rush into anything just because it seems like a good deal.

I know PM won't care for the home as well as you would (then again neither do tenants).

But if you had a reasonable explanation - went back to W2 job, was taking care of a sick parent, lost your source of referrals, etc. - they should not fuss.

Is the tenant otherwise cooperative and taking care of the place and paying rent timely? 

There are definitely some rough areas you need to be careful about though.