Just make sure you’ve lived there for at least 2 of the last 5 years, which it sounds like you have, so you should be in the clear.As for timing, since both deals are happening around the same time, things should move smoothly.

This allows me to get into a great property and leave the bank out. 

Does anyone have any tips on the best way to finance renovations/improvements for properties like this?

I like this platform on BiggerPockets which allows people to connect with one another in a structured manner.

Or should I save up separately for my first rental property and keep my personal residence out of this?

My brokerage has been tracking the data from the West Penn MLS for the past 2 years, and I would like to share some of the highlights so that we all have some hard facts to lean on when answering this question.

What made you interested in investing in this type of deal?

If you are leaning towards using a property manager or think you may at some point, just make sure you budget for that in your analysis so that your cash flow figures are taking that potential expense into account.Since this would only be your first property, I don't think you need a professional hiring firm--it would probably be more beneficial for you to do the interviewing yourself to be sure that you set expectations properly, are aligned, and can work well together.

Any general tips or advice on forming partnerships with out of state investors?

there are so many forum posts on BP from folks who bought a random property in a 'low cost' market and got crushed by deferred maintenance or challenging tenants.i looked at a few of your other posts.