Additionally, we have developed templates for tracking key metrics that we require our PMs to fill out weekly. 

Here are additional comments:1) Buying out of state removes any local knowledge you have from assisting in your success, including knowing areas, people and costs. - We always recommend buying your first rental locally if possible and DIY managing to learn as much as possible before investing OOS.2) Lots of crooks and incompetents in the PMC world:( They both cost you money.- As already stated, you'll have a small portfolio.

This sounds risky, are you being compensated by additional rent and have you checked with your insurance to ensure you are covered. 

If you’ve got strong tenant demand, proximity to top employers, or even access to public transit, you’re laying a solid foundation.

The 2-3% points in extra cost are worth it if you plan on using as I described above because the use would be for a few  months at most and due to that short term use you can survive a rate adjustment up.But, if you have no plan to payoff the debt like when using for a down payment on a long term hold why pay the extra cost for flexibility and have the additional risk of the adjustable rate with the amortization looming when you can get a fixed rate second mortgage. 

They will have additional costs for mailing & online campaigns to get leads.

Would love any additional info and the chance to check it out! 

If you have any additional advice please let me know!

That would be a helpful addition to your plan as you would further reduce your cost of living.Also don’t forget from that $600 you are planning on getting in cash flow you have taxes, insurance, maintenance, capex, and vacancy to consider.With two homes, you may want to keep that extra $20k as an emergency fund rather than spending it on a third property and then be left with no emergency funds.

With the economy of scale in multifamily, each additional unit nets you a little more than the last, as a rule of thumb.