My brother-in-law has been financially successful in real estate, but to avoid family issues, my wife and I have resolved to be self-sufficient.

I'm not saying a great PM will outperform every owner/operator, but from what I've seen they out perform the vast majority in my market.Don't get me wrong, there are plenty of terrible PMs out there as well.

It is very hard to do an FHA 3 & 4 unit currently because it has to pass the self sufficiency test and with where rates are at it is unlikely to pass.

There will be big pressure on rents over the next year or two in Austin area due to the vast number of apartments coming online. 

I’d think 4-5% would be sufficient for vacancy.

Also, with a Traditional IRA you have to make dang sure you have sufficient liquidity to take your RMDs!

However, when I have conversations with perhaps the vast majority of other people in my friends group, and certainly in recesses of internet forums, subreddits, and facebook groups, the prevailing consensus is that I am crazy. 

Are the rents in the area where you want to buy sufficient enough to offset your costs of living on one side? 

@Erin Spradlin - I agree, landlord insurance isn't sufficient, a security deposit and umbrella insurance is needed too.

The plumber says the pump he recommends is 1/2 hp should be enough as it pumps 21 gallon per min and should sufficient for the 4plex.