You might want to consider what specific sweat equity you are offering, and where you are located.

Located in Central PA.

The debate between securing a buyer or a deal first is common.

Anyone want to partner up for a nice return on your capital secured by real estate?

Will depend on several factors like the type of property, type of tenants, your risk tolerance, other assets you own, your estate planning, laws where the property is located, etc.

Secure the property; even in the best areas I caution you to make sure the property is secure with an alarm system with cameras.4.

Which town is your property located in? 

second question the answer i believe is Yes, if you have net rental income from a rental property located outside your home state, you will need to file a nonresident state income tax return in that other state (if you meet that nonresident states minimum filing requirements)  https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/i-got-rental-income-from-another-state-do-i-have-to-file-income-tax-for-that-state/00/316523i currently live in ca and had to pay a small idaho income tax for my properties thereand no i dont think you are not taxed twiceas far as other pros or cons... id say you can pretty much find property to invest in no matter where you are. 

Locate For Sale By Owner (FSBO) HomesA useful approach to locating homes available for purchase through owner financing is to drive around a desired neighborhood and look for “For Sale By Owner” signs.

It is a 2-story house, where the master's bedroom is located on the first floor, and 3 bedrooms on the second floor.