The rest of the money I want to invest in a flip and/or buy and hold.

I am looking to buy a third property in the same market.

The biggest mistaker I mad when I started buying deals, we were self managing.

We're hoping to do seller financing when we buy our first rental investment property, so I'll be hand-writing letters to long-time owners of rental properties (mostly single family or small multi-family).

Its called buying cash flow, nothing wrong with it. 

Not waiting doesn't mean you have to buy, it means you keep learning, looking, and seeing what's out there.

The same rate of return in your investment example works inversely when it is your interest rate on the buying side.  

Buying in the right market for appreciation.

The only reason this came to light was I was looking to buy a different primary home and it got me looking at this! 

Many OOS investors set themselves up for failure because they don't invest the time to ACTUALLY understand:1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.2) The Class of the PROPERTY they are buying - which is relative to the overall area.3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.7) That OOS property Class rankings are often different than the Class ranking of the local market they live.Class A is relatively easy to manage, can even be DIY remote managed from another state.