They probably want to structure the sale as a seller finance to avoid gains, and take the monthly check.

I would like to get an 80/20 loan to avoid paying mortgage insurance. 

But in those areas you need to wait out 3-5 of rent increases before you see some reliable cash flow.There are other cash flowing opportunities, but it's going to be hard to avoid the value traps from 2,000 miles away.

However, you’re talking about getting a loan, so you really should be making offers contingent upon getting financing and submitting pre-approvals (not POF) with your offers.Or just focus on off-market properties and avoid this issue altogether as most sellers of non-listed properties don’t generally ask for proof of funds or pre-approval letters. 

I wasn’t thinking about going below 20% because I was trying to avoid PMI but I’ll definitely review if it makes sense cash flow wise and to free up funds for other investments.

By networking you find out about off market deals, meet investors, meet partners, learn about up and coming areas, find out about future projects which will allow you to piggyback off of by investing next door or across the street, find out which banks are offering the best rates and terms, which contractors are good and which to avoid... bottom line is... if you increase your network you GREATLY increase not only your chance of success but the speed at which you get there.

On the flip side, if you provide appliances and all the tenants bring it with them in your market, they may not know what to do with their fridge and avoid your unit for it.

Any help appreciated on areas to buy, avoid, up and coming, peeps to know, etc. 

My situation is perhaps a little different, in that I'm in a position to sell my only rental property, which was my first home (tri-level townhouse), to avoid having to pay capital gains on it. 

I am trying to avoid paralysis by analysis, and want to pull the trigger on my first investment!