Not sure how depreciation will work or how to get the best tax savings.

(my opinion).I think that you may have left out some expenses, however, you can save money if you self manage.My first comment is that you can save money if you manage this property yourself. 

Go ahead, efficiency is the way of the future and they will save you good money.

They were more than happy to give me copies of their utility bills if I was going to put more insulation that would save them money. 

The alternative is to sell my current residence, use some of those funds plus my current savings to buy a rental property + new residence.

That would save you from having to move twice in a short period of time with a newborn.

Some people come from money, some people had a previous career in finance and know lots of investors, some people are really handy and save a killing on fixing things. 

Save yourself the hassle and network with as many brokers as you can. 

. $400 is cheap, that is good, saved yourself some $$

I would run the numbers on how much money you will be putting into this property over time, and whether you would like to visit many different places over time and possibly saving money.