Investing for cash flow in Stony Brook, Long Island

[Katerina Polonsky]

I am a new investor with one rental property in upstate NY. I live abroad right now, but I am determined to go back to NY soon to let my kids finish school there. I am looking for a house in a specific school district - Three Village in Stony Brook, Long Island.  This purchase will be leveraged, and my plan is to rent out some bedrooms to Stony Brook students to help pay the mortgage and taxes. Ideally, the house should be a mother/daughter type with a lower apartment for rent. 

The problem in Stony Brook is that the taxes are really huge, which makes renting not a good business there. Please correct me if I am wrong. I love that place, and I want my children to attend that school for sure, but I would also like to be able to get some cash flow from that property when we are there, and especially after we leave to some other place and rent out the whole house. 

Also, are there any limitations by the town on how many students can be packed in one house as renters? Where should I look up this info?  

Wouldn't it be wiser to purchase somewhere else with lower taxes and just rent in Stony Brook while we live there? As I said, I love that place and I really want to live there in my OWN house, but the house should have at least some rental potential as well.

Would looking into foreclosures help in minimizing costs and making such a purchase more attractive from a landlord's standpoint? How difficult/risky foreclosures are in that area?

I would really appreciate any input on this. This site seems to be very informative and everyone is so helpful!