My partner is based in Central Jersey and we are looking for a property manager to help manage day-to-day operations as we aren’t super close to the building.

Your best bet is to analyze off-market properties.

I am told the current owner operated on handshake agreements. 

Instead I would bet there are more resi agents than ever especially if you count wholesalers and other quasi-agents.What it did do, in my opinion, was separate the truly great agents and brokers from everyone else.

This is about your risk tolerance, no one can tell you the "right" answer but yourself.Putting 20% down on a primary residence is a safe bet.

Currently tenants go off site to do their laundry, I plan on cleaning out the basement and adding coin operated laundry and installing storage cages for the tenants to rent if needed.  

@Kristin Shopp I have partners who operate in Dallas and San Antonio as well as Austin.

rehabbed the trashed studio into a 1 bedroom, made repairs to broken exterior staircases, coin operated laundry room, and fixing up the garage for extra income.

I am betting on income not appreciation in this market.

@Teho Kim, local/regional banks and credit unions are usually your best bet.