You wait, and do the numbers.Stay hyper-local for your first several deals.

If so, how do I get around this or at least make it to where only the rental income from the property is taxable locally? 

You have come to the right place to begin your investing journey.Have you looked into attending local meetings and joining Facebook groups? 

I'm in a space to do some house hacking, and am under the general (unresearched, unless you count years of Zillow watching) opinion that my local rental market is healthy.

I'm a local broker and we manage 100+ Airbnb properties and other rentals.

You may also try posting in the specific Buffalo forum for local info.  

So outsourcing some degree of property mgmt would be a must... but the deal won't work paying a local property manager a large % of my revenue...Instead, I would set up my "boots on the ground" (cleaners, handyman), and would need an offshore virtual assistant to manage guests and coordination of my local team. 

My sample size and knowledge is limited, so I hope some local Jackson investors jump in with their advice.

He was also featured on the local news station for his innovative work.The tenant is of course taking no responsibility for any of his actions or the damage, and he mainly just throws out empty and somewhat comical threats about a team of lawyers on standby, accusations of insurance fraud, and leaving bad reviews for the property manager.

I think that most of the deals that pencil this way are going to be fought over by the local investors.