I learned that there are great opportunities to purchase low maintenance, fully remodeled homes in places where there are high quality management teams in place that can produce nearly passive income.

Kinda fun tbh.I ended up having 2 people just from talking and lifestlye (pets, kids, jobs), I picked one as they have a more consistent income and did a vetting on credit/background for around $40.Within 3 days, the vacancy was filled.RenovationNo property is perfect.

Typical rates are 8-12% of income either monthly or yearly depending on manager.

Nothing wrong with renting out rooms which is called (Boarder income). 

Personally, I dont think that alone will be enough to generate your goal (5k/mo) regardless of what you put it in.

Also, setting up one of the units as a medium term or short term rental to increase income.

Adding a negligible amount of tax revenue through income?

What investment choices would you recommend to offset W2 income taxes?  

Secondly, DSCR loans offer favorable terms and lower risks, as they assess the property's ability to generate sufficient income to cover debt obligations.

Real estate investing is normally done by the "white collar" professional because they have the incomes.