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.

What areas are your properties in and what rent levels?  

This would ensure that the umbrella company is informed of the other insurance company's coverage levels. 

Prices are beginning to level because of the market is beginning to stabilize.

Market rents are about $1200/$1250 per unit, and eventually I will get the property up to these levels, which should give me about $300-$500 of CF a month when I move out.I am very excited about this first deal, and wanted to share with the BP community!

Your budget, your interests, your comfort levels, and just general preference.

However, It's worth noting that mere joint ownership of real estate and rent collections does not necessarily rise to the level of joint business activity that constitutes a partnership.