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.

Mortgage rates and PMLs are 8-12% plus points right now so the deal has to be a low enough entry. 

It's the cash you put in that's your cost for the property. 

The catch was that it would cost me $7k.

Would it generally be a location that tends to have a higher cost of living? 

. - You have no recourse against an agent or PMC once you pay them for the placement and it turns out to be a terrible tenant:(If you have the time and network and post here for assistance, it's always a good idea to learn the rental business from the "ground up".Of course, one mistake can also cost you thousands of dollars.

Though, that would probably be a similar cost to the above ground pool. 

Centralize your back office / use remote employees / VA where appropriate to cut costs and improve service levels / responsiveness.  5.

Look for a location with low crime, then look for the neighborhoods with the best schools.

You would end up saving the higher interest rate on the HELOC as well as closing costs.