Not hiring a cpa or attorney (I see you are both) does not put you in physical danger.

The reality is you can figure it out yourself for sure, but I definitely agree with @Frank Wong that having a mentor is going to help you go faster and make fewer mistakes.

Looking to purchase our first MF or SFH soon, but unsure about one big thing: Is it smarter to invest in an area that has a high rental population (and high inventory/competition), or an area that has fewer rentals bc the demand isn’t as high?  

I should also point out that I am learning SUB 2 from Grant Kemp (so I am aware of all the dangers).

Evicted tenants can be angry and dangerous.

Dangers of lead paint were known long ago.

What are some risk and dangers of lending?

A family of 4 will not look to buy a 2BR which will equal fewer buyers which will affect demand and price. 

Not only can stuffing 5 rental groups into a legal two family dangerous for the people living there, but it is also dangerous for emergency responders, like firefighters, to get in and out of there safely in the event of an emergency.Also, the seller does not have to fix any code violations by the city prior to selling the property.

This is a dangerous strategy in my opinion.