I have pulled a permit for removing a fireplace, but probably would not have but I had a significant remodel going with permits and did not want hassle of him making an issue of removing the fireplace (the inspection for fireplace removal consisted of only verifying gas cap was in visible location, he did not even spray it).

The location is key, with easy access to transportation, parks, and the rich cultural heritage of the area.

You'd want either an LLC in the state where the real estate is located or you can also just put it in your name and take out a good landlord's policy from Farmers, Erie, etc. which will protect your investment just fine. 

Is it fairly priced for the size, location, quality, and other factors?

With $1mm cash we can do 3 locations netting $40,000 before income tax per month.  

As I am new to this and looking for cashflow using rentals, one key aspect of this investment is to ensure that the unit rents out quickly and while I do understand that cash flow to begin with might not be attractive, it can be a good investment in the long run if the location is right(as appreciation also kicks in).

Additionally, there typically are additional state protections (outside of the agreement) based on where the fund is located.

If it's in a good location anticipated to go up in value, it could be worth it

Also make sure to build on a property located in a desirable location with larger pop density and if holding for rentals, charge median rent for that market as lenders want to see a bigger pool of buyers/renters available to occupy/sell. 

Do you remember the name and location of the senior complex you toured?