I have a couple of questions as to what would be "best practice" for how we are running things. 

Practice analyzing deals every single day & try to get to a point where the numbers/lingo is almost second nature. 

It is a way to reduce risk assuming your existing residence would have good margins.On a practical basis, investing close or far depends on how involved you want to be.

Best practice was mentioned above about using QBO with class tracking and you could look into projects.

Tons of practical advice and your state-specific laws.

Entry cap was 5% so by industry standard practice (add 0.1% per year for every year of hold) I could have used 5.5% exit cap.

I've heard of people doing that but didn't know if this is the normal practice or more of a risky investment.  

(SEO ahem cough cough).Or "FREE motivated sellers.. here's how"...and then they will tell you to go to the elderly home and sit next to their deathbed trying to get their house under contract.

More often than not, landlords/leasing companies are not going to allow this practice and will ensure so by including a provision in the tenant's lease.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney.