However, there may be a commonly expected way of handling it in your area.

Real estate agents gave me nightmare scenarios.

In my opinion disclosure is always the best policy in both scenarios. 

I ran this scenario for a "small" investor, with maybe 2-3 properties in their portfolio.

Give me a buzz if you'd like to explore this scenario further.  

Since this would be my first long term rental property do you recommend starting with a property manager from the beginning or managing the property myself.I understand that there are pros and cons to all of these scenarios, I'm just looking for various insights.

It is a common concern, I think if you are writing competitive offers then you can request a discount.

The loan will be interest only for about 12 months (up to 18-24, but 12 is common) with a balloon due at the end.

Prepare for the worst case scenario rate wise.

Appreciation, in particular, is crucial, while cash flow acts as the fuel to keep the property sustainable.Your Scenario with 2% Home AppreciationHere’s how the deal looks using your assumptions:Year 1 Analysis Cash Flow: -$1,123 Initial Equity: $51,000 (assuming a $249k purchase on a $300k market value as per your report).