I would stay close to turn-key for your first oos investment.

The process can be started about a month prior planning for a 30 day close. 

Even if you live in a Home or one of the Units you can still set the address or other units up on your "Schedule E" and claim the standard deductions.To be totally compliant I would tell you to refinance and transition the property into an Investment property and close it in an LLC.

I closed on my S8 rental on the 31 and they delayed giving me the HUD agent for the tenant, so the rent was sent to the previous owner. luckily, I had that in the contract just in case that happened.

A few additional things to consider between the two loan types: prepayment penalties, probability of closing, points/ fees.... and vesting (LLC or personal). 

Have you looked in markets close to you?

I have business checking accounts for each entity, and business Amex and Chase Ink cards, which keep this all a closed system.  

Closing costs are typically between 6K-10K in either scenario.  

I closed my first deal in August of 2021 & my second in October 2021.

There may be more as you go further out from Raleigh or into Durham - but these 3 stood out to me as being cheaper than or equivalent to rent while still being close enough to commute into Raleigh for work and fun.