Out of state investing is great if you're looking to achieve financial freedom and if you have a full time job then turnkey rentals are a great route to go.Let me know if I can be of any help. 

And of course there will be PMI.If keeping that 5% in your pocket will allow you to fix the property up and achieve 25% equity, positioning you for an advantageous refinance, or if that 5% will let you fix it up so the bumped rent is greater than the bumped P&I payment (eg, 15% down costs $150/mo more, but the new kitchen it allowed you to put in lets you bump rent $250/mo), those are basically the top 2 times that 15% down makes sense. 

In any case, I'm curious why the hypothetical scenario here matters - what are you trying to achieve from this exercise?

@Jon Dorsey...the 3 point spread between your interest rate and cap rate is a rule of thumb in order to achieve other return parameters and standards of what others look for in this industry. 

I have been a home owner for 8 years and I have always paid an additional ~10% of the monthly mortgage every month towards the principal of the loan.Any thoughts to whether or not this plan will help achieve financial independence sooner, or should I put this 10% into building a real estate fund?

My dream is to have rental properties (Single or multi families, apartments etc) I think it is a better way to become a millionaire and achieve financial freedom.

Then determine how many units you would need to achieve financial freedom.This leaves either appreciation markets or true MF (5+ units). 

Regardless, even once you get the wall built, I wouldn't let up with complaints to the police until some results are achieved. 

You probably have already thought about this and may already know, but it's tough to help you determine your criteria when we don't know what it is you are trying to achieve.

Use your screening to achieve your end goals.