I would like to add 2 - 6 container living houses for short, mid or long term rental.

When you sign almost all mortgage closing packages, you are signing an Occupancy Clause that states you are intending to live in the home for 12 months.  

Especially me as I do construction for a living. 

We haven't lived in the townhouse in the last 2/5 years so we would get hit with full capital gains.

Having a property management company seems to be a good option for me since I am living out of state.

You'd be surprised to learn that someone living in a rental or apartment, that has a family and is a successful small businessman, has the money and is willing to take that deal.

(or if they're primary buyers, they don't care about yield, since they're going to live there.)i just went to visit two very distressed properties yesterday that i would buy.... if they were priced 50% lower.  

If you're a single mom with student loans, a car payment, and living paycheck-to-paycheck, then $20,000 would be devastating and a reserve is critical.

If you go into Central or South Scottsdale (Old Town) $1M will buy you a smaller, older home, OR half of a big, remodeled home (as alot of the Arcadia and Old Town area are turning over old small homes to be big beautiful homes in the $2.5M range and higher).There are options.....for both buying and renting, that would work with your situation.By the way....it's 51 degrees in North Scottsdale right now where I live. 

In a lot of places, evictions are quick enough it shouldn't be an issue but I do tend to live by the motto "never underestimate how much damage a pissed off tenant can cause in just a few hours."