Once the money is tied up in the equity of the property its "LAZY money".

If you buy in such a city, you are almost guaranteed to have limited appreciation and rent growth.If a city has significant and sustained population growth, then the current housing supply will be insufficient and prices will rise until the demand (the number of people willing and able to buy) roughly equals supply.Rental rates are closely tied to property prices.

You tied up 70k and a minimum of 6 months just to go through this process. 

It worked fantastic however  I realized that this is a horrible idea as you will not have any savings because all of your money is tied up in home equity.

My husband on the other hand is not tied to the mortgage and has the ability to obtain a conventional lloan as a first time homebuyer.

Since you’re looking for landlord-friendly states, consider areas in the Southeast or Midwest, where affordability and cash flow potential are often stronger.

Expenses directly tied to a deal that was pursued but not completed (e.g., inspection fees) are considered part of your investment activities and can be deducted as a capital loss in the year they were incurred.

We’re looking at a seven-figure property in Texas, tied to a non-performing loan.

So even if you pick a state with stronger protections like WY or NV, the cause of action arose in the state where the tenant fell, so likely that the court where the accident happened would have jurisdiction.

If not seek a lawyer.The important thing is to cut ties as quickly as you can and transition your rentals to another manager.