Buying out of state is fine you will only have an issue if you go with a lender with overlays or requires landlord seasoning.They may question your ability to manage the property if you are out of state in terms of excessive mileage away.

You have 48 hours for proof of funds, but I recommend you get your pre-approval done from your lender (if you are using one) before you bid.

Unless your expectations are for non-recourse (which doesn't generally exist in the context of your borrowing needs), lenders are going to be more concerned with you as the signer.

Any tips for other creative lending sources such as private would be greatly appreciated.

I would be lending their money and paying myself a loan origination fee and perhaps a spread on the interest the real estate investor is paying and what the lender is receiving on the back end. 

You could try to find something that needs some either minor or major fixing up, and adjust your budget lower to account for 50-100k in renovations, or start searching for a lender that can help you with the construction costs, and then pay it off once the renovations are complete with a refi.

Your lender did you a disservice in telling you to pay that huge amount in points when rates are so high.I do not think you could switch up the deduction in later years, you would have to amend all the prior returns. 

One way is to see if a Hard Money lender would fund 75%-90% of the purchase and 100% of the rehab.

I read there are some lenders that would do a multi-family HE/HELOC.

What are the worries and concerns I should have regarding private lenders?