I can be patient, but I like to take action quickly.If I were to save for a decade (reserves + downpayment + closing costs), would I have been better off acquiring out of state properties or essentially being a bit of a slum lord to scale my portfolio faster to build equity?

Just guessing the numbers.If we put down $400,000 together with an interest rate of 7% (it could be higher), then im guessing the monthly mortgage with insurance and tax would be around $3,886.If each unit rents for $1,500/month: Total Monthly Rental Income: 1 , 500 × 4 = 1,500×4=6,000 Monthly Expenses: Mortgage (PITI): $3,886 Maintenance/Repairs: $500 Property Management: $600 (10% of rent) Vacancy Reserve: $300 (5% of rent) Total Monthly Expenses: 3,886+500 + 600 +300 = $5,286 Monthly Cash Flow: 6,000−5,286 = $714We split the profit in half so each person takes $357 a month..How much should we be profiting from this in order to make it attractive to jump in? 

I'm also I'm concerned that with sleeping sofas, users would have to put on (and take off) the bedding every day.

The National Association of Realtors says that the average profit on a flip is is $15,000 and takes 6 months from start to sale.  

Going through the experience and taking action will add more to your future wealth, then getting stuck in the numbers - CoC or ROI are not set in stone, and they also are just snap shots of what you see today.

Quote from @Daniel Baker: Hello everyone, Looking to get a little insight into what things I should take into account when selling a property.

While his loan isn't assumable, you could structure a deal where you take over payments while giving him equity in a seller-financed second note.

He's in Austin so a little ways away from you, but he probably has a good referral for a builder in Dallas who could take on a multi-family build.

I’m fairly new to real estate investing and looking to take action.

@Kisaki Nicole Kaopua as the previous comment had mentioned, I would take out a hard money loan as well.