There is a solution for Canadians, from NCH out of Nevada to use a regular corporation to hold limited partnerships.

I hold land personally with my wife that I am selling and at the same time I am purchasing my first str.

This affords you 2-3 properties using a portion of the $400K you have and the rest to hold onto for reserves and to stay cash fluid.

If you choose to buy a residence first I would try to hold out for at least a duplex.

Just wonder if holding reserves is smart or to buy 1-2 more to offset the low cash flow. 

I have put it in a bunch of rentals, and it seems to hold up great.

Are they responsive to your questions or can you never get a hold of them?  

It depends.It depends on the market, the market cycle of that market, how you find the deal, the type of debt you can put on the asset.If you're buying without a syndication, I never look at IRR, especially if my intention is to hold and refi. 

Thanks @John Clark @Jay Hinrichswould that be the state where the properties are located or the state where they formed the DAO LLC (Wyoming) which holds the paperwork for the partnership?  

I now hold the building and insurance in an LLC, but I doubt that does much for me.