There's not much difference in cost going up in tiers.Buy as much insurance as you can reasonably afford if you're not wealthy enough to self-insure against reasonable possibilities. 

Also, I would analyze the properties you can afford and see what the cash flow (or other financial metrics you want to use) is after the first year or two. 

I would analyze some properties that you could afford if you did a 1031 and if you had to pay taxes on that money.  

In a roomate situation, can one cancel entire lease, even if the other one wants to stay and have lease but cant afford it without the other one paying their half? 

I was planning to self manage for a bit to keep costs down until I had enough properties to afford the PM.

For example I live in an expensive area so my main task lately is I've been researching new markets that I can afford to invest in. 

Your purchase price point may also be something you'll need to consider so you're not shopping in a great STR market, but can't afford anything in that market. 

@Kel BalaseMy parents purchased a personal residence in Katy, TX.New Houses(constructed after 2000) can be very affordable given the school districts, safety, age of home, etc.I don't invest here but I can see it working for others.

Secret dogs--the barking all day when the master is not home is more a problem than just having the dog.In my experience they are Secret because the people really can't afford the deposits, and the renters who make deposits won't turn in the secret pet owners because of the "Just can't afford it" thing.Those who can afford it--pay, those who can't have "Secret Pets".I believe cracking down on secret pets may cause move outs because people love their pets--Secret or not.And turns are expensive and best avoided if possible.Tell your pet owners (and the property owners) they can use (Food Grade) Diatomaceous Earth to kill fleas and flea eggs inside, outside and petted on the cat or dog.

It had a couple of exit strategies and was very affordable.