Having a legally binding agreement in place can help mitigate potential conflicts and provide a framework for the partnership.4.

What I am finding is that the money I have saved can perform risk mitigation in the event that more vacancy comes up than I calculated or if something needs a big rehab job out of nowhere.My question is to figure out how to leverage this money most efficiently without putting too much leverage in my portfolio.

Through tenant screening, do you feel it's possible to mitigate that risk? 

CAP rates and interest rates are just not jiving at the moment.With that said, if you are a high W2 earner, those things could be mitigated.

And when so blatantly one has violated Fair Housing, and is caught dead to rights including documented, yeah, if smart they better get ahead of that with TRUTH, accountability and at least TRY to mitigate things in hopes of staving off the filling of complaint.

Signage is the only way to mitigate coupled with having the guest sign a rental agreement assuming risks. 

I put myself in positions where I mitigate the risk upfront.

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estateUnderstand you can not eliminate all risk, only mitigate it.

I do think 2-4 plexes at first cash flow better and mitigate risk.

Acquisitions team, renovation crews (fully licensed and insured), Property Management, and a Real Estate Investment Brokerage in case you ever decide to sell.By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind.