It might be better to partner with a successful PM that could help you with the systems, brand recognition, and give you that shoulder to shoulder training.

I get the higher the better. 

I feel the economies of scale are better and the returns are greater.

If I could find a multifamily to househack that may be a better option for 5%.

Jeff might know better, but on the surface I'd say no. 

It takes great discipline to crawl out of debt and get to a better financial higher ground.  

There are much better options for less money available.

This also leads owners to ASSUME simpler is better when it comes to management contracts.

Which do you think is better for a new investor and why?

There's nothing better than getting an FHA or conventional offer accepted by an unsuspecting seller, knowing you will have plenty of opportunity to re negotiate once the appraisal comes back.