Its further complicated by what entity the property belongs to.

You'll gain valuable experience in one of the less complicated ways to get into the rental business.If you have no idea where to start, a turnkey rental referral network will usually have detailed information on one or more markets you might consider.

I have a complicated situation here and I'm looking for some advice. 

It's not really that complicated to buy out of state.

If you have complicated income and additional properties, I can see 1.5% but not 3% for sure.

. =) The complicated stuff, I might have to call someone for that.

Although you have not supplied all the detail (a type of ownership and such), there is another complicated way to report this as partnership return, and their portion of the expenses as non-deductible expenses on your partner's side.

The property management software can complicate things and if you're not having to manage many properties, I don't think it's worth the trouble. 

If the property doesn't sell at the upset sale, the bureau will eventually conduct a judicial sale (a/k/a free and clear sale).

A lot of the operations can be different, more costly, and more complicated.