Certainly a lot to think through when looking at new markets, but I would start with an area that you are either familiar with, enjoy visiting, or have family/friends.

@Cameron Turley, a lot to unpack here.

There is a lot to unpack here.

From what I can tell, an LLC is taxed at 17% to 25% of the profit and a single person owner is taxes at 28% of rents collected (with the ability to charge back some expenses).I found this article in UniPlaces helpful - http://portal.uniplaces.com/pt-pt/imposto-sobre-rendas/ .I still have a lot to understand about the REI and perhaps I am missing something. 

I went LLC first, but I know I'm going to do a lot of investing and have a a lot to protect.If I didn't, I would get the rental first and once it closes get the LLC set up and quitclaim it. 

The daughter understands this and is fine with it (I will probably still pay her something like $1,000 as a nice gesture, after I buy it, which would be a lot to her). 

But you said you're a newbie and I can sense the excitement in your post but there's a lot to consider beyond enthusiasm to accomplish what you want to do.With that said I'm going to give you a ray of hope- A few years ago, I believe after Hurrican Katrina, there was a small town that became a food desert.

And thanks for the diagram, it helped me a lot to understand the dynamics.

-Being a first time RE investor, doing an out of state BRRRR might be a lot to bight off at once so I'm considering option 2.Option 2: Buy a new primary and use my current residence as a rental-The cashflow from my existing primary will cover the cost of the personal loan.

I have rented to lot to a car dealer and he parks his car in the lot.