It's not really that complicated to buy out of state.

In addition, this property has a commercial unit which has added a layer of complication. 

However, please take your time when composing the plan because the last thing people want to do is read a complicated back and forth 50 page plan on saving up 20% and buying a Duplex haha (unless they're your hard money lender?)

Or is it more complicated than that?

The designation allows us to write off any paper loss which was the result of us extracting money (increasing the loan amount) and therefore increasing our monthly payment.Note a 1031 exchange has complications because you lived in one of the units. 

Nothing you are doing is that complicated.

The lender would just need a reasonable explanation of what was going on to approve it.Also, you mentioned "we" so if, for example, your spouse had one VA loan and you had one VA loan....meaning, you are not on each other's loan, then you do still have entitlement left (the formula, while complicated, was included in a link above). 

My question is: I think it can get a little complicated being that it’s our first deal but I also think we can get this place for rather cheap.

It seems like a case of unnecessary complication--if you lease out 3 separate rooms, it's fine.

And if you do it in the same year as the aquisition year (in the tax return for that period) the CPA cost should be minimal - you can still do it for properties acquired in past years, but it complicates things since now you/CPA have to deal with adjustments.