Quote from @John Brown: I have a friend with a property in a very desirable location in Texas that I believe would be great for STR.

There is also a recent Bigger Pockets Podcast called " Is This the Most Beginner-Friendly Way to Start Investing? 

A friend of mine, Ryan, who invests heavily in Baltimore, realized his interest costs were eating into his cash flow.

It's kind of like the ex-smoker, in the company of smokers. 

Wasn't for me.I'm not affiliated with the company, although their founder @Brandon Hall is a colleague and a friend of mine. 

I like to build friendly relationships with other investors, and soon become one myself 

I’ve seen this issue in San Diego, where a friend of mine worked with a city planner to rezone a lot for duplexes and triplexes.

There may be some lenders that might be a little more "borrower friendly", but I haven't found them (nor do I have the time to look for them).You might be able get better terms if you "house hack" by getting an FHA loan, but I don't generally work with those loans.

I am NET cash flowing just over 1k (includes maintenance, repairs, cap-ex, vacancies, utilities), which is pretty good considering this is in SoCal.

South Jersey more landlord friendly than North Jersey, but you have more appreciation in North Jersey.