We are looking to invest out of state in USA for remote investing with Roofstock.What should we keep in mind with respect to state taxes?

Lots of people are OK with that because a lot of times people buying in that 2 to 5 million dollar range are more "sophisticated" than someone buying their first home or investment property and they know their way around the deal and don't need guidance, they just want to get the deal.If you feel comfortable with the deal process and economics then I wouldnt worry about what the listing agent is going to earn but if you are worried about getting hosed, you probably should be and hire an agent to work on your behalf.

Cap rates range from 6-9 in these areas. 

Good flippers are great clients to have, especially if you respect one another's goals, professional opinions, insights, and experiences.Once your client has purchased their property to flip, don't disappear on them.

I think that I can afford a smaller home (1,200 sq.ft or less), but it would be towards the upper range of my budget (approximately $600K).

Credit scores are highly over-rated IMO as long as they are in a decent range.

There are a lot of homes for sale it seems in the 30k-50k range.

Louis and Memphis are more reasonable in that price range.  

I would like to work around 3-5 hours a week to start outside of the EST 9-5 time range.

There are endless strategies for house hacking, and I have worked with clients ranging from single individuals up to full families, or couples with a new born.