I am looking to diversify and derisk my portfolio by buying and holding out-of-state LTR.I have about $200k of cash flow to reinvest yearly.

Your profile and post mentions Philadelphia and New Jersey.There are unique tax implications between those who live and work in another states as there is a reciprocal agreement between the two states.

I"m also looking for out of state multifamily investments too. 

Just state in your marketing or listing that the other side of the unit is rented out for midterm stays of 30 days or longer.

Sounds like a single family home with an attached garage which to me sounds like it could be R-1 single family only residential where you are unlikely to be allowed to add additional units unless you're in a state  forcing municipalities to allow ADUs of some sort.

Looking for state income tax free properties and a possible move for myself to a state income tax free state as well.

ADUs are really evolving, especially on the west coast where some states and cities are making it easy to build them and, in fact, incentivizing them because of the lack of affordable housing.

I'm not a lawyer, and I'm not in your state, so take this with a grain of salt but-If "accepted an offer" means that you signed a legally binding contract that doesn't provide you with an out, then the short answer is no, you cannot legally cancel the sale. 

Does anyone have any insight on this area as we currently live in another state.

I’m wondering at this point if the agents just want the offer in because it doesn’t benefit me to do an inspection with the current state of the house.