How difficult is it to manage 40-60 units as an out of state investor?

Finding the right one may be difficult, but you need to search.

You should do your own home inspection, it's not that difficult. 

The short answer is, I need either a boat or a crew willing to take me on with no  experience, which I'm told is difficult to find.

Since the vast majority of people on BP have CoC or cap-rate thresholds it will (almost by definition) push them towards older construction.

PA is a bit difficult or has more "rules" on lease options which also might be why the agent/lender involved are not thrilled about it -  what about a contract for deed or wrap mortgage on their existing mortgage for 9 months ?  

It will have a more difficult tenant pool too, and more interesting landlord-tenant issues. 

Cash flow is very difficult to find in an appreciation market like ours.

With that said, I've begun looking around in other states and am finding WAY better cap rates just about anywhere else.

"They" all seem to say that though it may be difficult to get involved with little money (I've only got $10k to invest), that it is possible.