Others will mention laundry mats, or self storage.  

If I were in your shoes, before looking to go out of state, I would surround myself with local investors and some of them will be investing out of state and others will be house hacking multis like you describe.  

Insurance for storage should not be prohibitive.

Don’t be surprised if you also catch an up-close look at the breathtaking horned owls that make our trees their home while walking the property.The interior features include Two wood-burning stoves & a fireplace with extensive hand-built wooden cabinets and storage throughout both homes, a spacious tile floored front room, humidity regulating swamp coolers, comfortably sized rooms, several ceiling fans.

Looking for some opinions about what you would do if you were in my shoes. 

If I was in your shoes I would really consider house hacking.

It is only one step above a shoe box.I use Quickbooks, but I hate their online version which I consider a total ripoff for small businesses. 

Then Plan A is to build 5-10 self storage units 10x20 and possibly 5 - 10x10 or 8x8.

Backyard has storage shed and 34 ft.

2 parking garage (about the 2 spot, it's long parking not side by side)Storage (4x3' ) Water heating included in the HOA fees (condo fees)Gym (with decent equipment)Outdoor poolSince it is off the main island, the cost of the taxes and condo fees are cheaper than on the island.