To make a decision on the route to take, you have to do some homework first which entails, learning how much $$ you have/need for each, how much financing if any will you be qualified for, what's your level of expertise in either, will you have partners going in, do you have the team of qualified professionals for each.

I don't have anyone in my family or friends that's owned real estate so it's hard to find someone to lead me in the right direction.Property is a fourplex in a mid level neighborhood.

Look at your own risk tolerance and stay within your own comfort level. 

I think whether turnkeys are good for out-of-state investors completely depends on:the investor's goals and interest levels in what kind of investing they want to dowhat turnkey company they work with and what they buywhether or not the investor is prepared to do their own due diligence and maintain an eyeball on what is going on with the property, even when other people are primarily managing itI've almost always bought turnkeys out-of-state and I've loved them.

I could imagine a commercial level LVP could handle a few keg parties.  

It is definitely possible, but the question here would be how long would it take to reach the level of appreciation that you are looking to achieve.

Yea, after some more digging, I think this is a state-level issue.

As long as you are abiding by the Fair Housing Act and not making a decision based on any protected class, I think you can ask anything you like (e.g. do you play chess at the grand master level?

Prices are sky high and it seems like buying at these levels would not produce much extra cash flow.2) How difficult is it to invest out of state? 

It will be an add-a-level project.