Thin margins + strong tenant rights + limited reserves is a tough combo for a first rental.Out-of-state can work, but only if systems come first.Remote investing fails when people underestimate:• Property management quality• Rehab oversight• Cash reserves• Local complianceIf you go out of state, you’re not buying a house, you’re buying a team.Equity on paper isn’t liquidity.That 50–60k in equity is real, but it’s not usable until you refinance or sell.

Your forced equity if done properly (BRRR method) will yield a lower loan payment monthly and the numbers will work better on a local STR property. 

But the quality of a neighborhood is subjective.

First property buy a good quality home.

The reward far outweighs the risk - added income, filling vacancies sooner, and better-quality tenants.

You’re asking the right questions, which already puts you ahead of most first-timers.A few thoughts based on what you shared:Before making an offerLock in your buy box first (price, rent range, property type, neighborhood quality).Talk to property managers early!

If you make your ADU a premium unit/super cute, you can attract high quality renters who will stay longer.- Also building cost is only getting higher in the future, so it's better to lock in lower price/property tax now than to wait further.- Overtime, the math will continue to get better as rents go up over time. 

Overpriced for not a good quality service.

The BRRRR method is a popular strategy to stretch your cash on hand, although it does require getting solid deals like Drew mentioned.

If it is higher than that, most lenders will want a clear explanation or will haircut it.On operating expenses, the right answer depends on age, condition, and management quality, but for B and C class multifamily in the Southeast, a 40-45% expense ratio is a common baseline.