I have been renting rooms in my home as mid-term rentals and have experience in that area. 

of course you have to handle the inquiries… but it’s pretty easy… we’ve done it multiple times.Your 6% appreciation approximation is less than the 7% average return the stock market  does long term - and lately it has been blowing that figure away - though as they say - past performance doesn’t equal future performance. 

Biggest regret was waiting to long to hire a property mgr.

Prepayment penalties- usually 1-5 year terms.

What does cost me is a tenant who doesn't stay very long.

Long story short VA doesn't require us to make a down payment at closing.

Most cost effective way to go is SERIES LLC.

As long as you have a plan to pay it back, I don't see an issue.

As long as I am within my inspection period I can pull out of the contract at anytime.

I used to live in the property and are in very good terms with the previous neighbors, and don't want to risk anything given the shady past/current behavior from the tenants.