I have 3 homes managed by a property manager.

One of the things I'm trying to figure out is if I'm better off getting a few lower cost properties or on higher priced property. 

As a property management company in Washington, we help owners navigate these challenges and optimize profitability if they want assistance analyzing their property or planning future strategies.

Would living in the same property as my tenants have any downsides?

We are seriously considering  rent to retirement properties given the relative passive nature.

The first thing here would be the regulations and laws governing acquiring properties, managing properties and selling properties.

They often have access to off-market properties which gives you less competition.

@Todd Knudson is there a loan on the property?

I have a w-2 income and own three properties, all long term rentals, that I've had for a few years.

@Kyle LipkoRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?