I’m sure ill be following up with additional questions; my concern at this point is knowing just enough to be dangerous but not 100% sure of what I’m getting myself into with a new investment.

I wouldn't recommend it for anyone with fewer than 100 units.

I understand just enough about accounting practices to be dangerous, but I know the cap rate can be effectively increased by depreciation, etc.

Some pockets with fewer buyers (higher end homes) have already seen some declines and are back to stable.

Now the dangerous part of this plan is the hands on participation of the real owner, say Tom Smith. 

You are exempt if you have 3 or fewer homes or live in a multi family with four or fewer doors.

I am assuming this can be dangerous if they are building nests or anything or biting electrical wires.

They are rising so fewer first time home buyers will qualify.  

Relying on the local handyman is dangerous, what if he is no longer available?

Your second project you will make fewer mistakes, then the next and next!