From my topical research, Tennessee doesn't levy any state income taxes at all, so, acknowledging that I don't have all of the information, you may owe no state income tax.Also, I would like to clarify that failure to qualify to a 1031 exchange would be irrelevant to you if you qualify for the 2 of 5 year exclusion.

What if we are at step one?

There is a meeting every two Tuesdays at the Squadron Restaurant next to the Airport. 30 to 40 people from newbies to Buildings owners. 

It was pretty much a nightmare because they were in near-east Dallas and they stuff we looked at was burglarized to the max.  

As other suggested the places you mention above are a broad spectrum, so I would first take a look at / underwrite 10-15 properties in each area.

I'm looking at fixer uppers that are considered livable (heat, plumbing, etc) and I think my DTI will be sufficient once I get renters on my current quadplex.Just trying to plan ahead, thanks!

If you are good at managing a budget I think this is fine.

You cannot charge one dime more nor a "pet fee" because service animals are NOT pets.If the applicant wants special features such as a wheel chair ramp, etc they MUST install that at THEIR expense and you can require them to bring the property back to its original configuration at the end of the lease at THEIR expense. 

Using a service to report rent debts to Credit Bureaus can be very effective at recovering those debts because it can impact their credit report and score for years to come, typically 6-7 years depending on location. 

At 5 rental properties, you can more then afford it and it will save you time and headache, and even better could save you a lot more money!