In many cases bigger banks or lenders have specific programs that cater to first time home buyers and investors. 

Vacancy hurts a bit more, but the biggest issue with renting out large homes is turnover cost.

Simple enough - except that he built a million dollar home in a $300,000 market. 

Convert the property you are living in now to your second rental, and buy a new home for yourself. 

I want to remain local in NJ or at most drive down 1hr to PA (self-manage or, last resort, hire a PM)However, I must also consider maintaining reserves, a safety net for my primary home, and an emergency fund.It's just hard for a new investor now :(

In the last 18 months various states have instituted new rules, regulations or laws related to (1) need for licensure to wholesale (2) restrictions on marketing of a property in which you do not have ownership and (3) disclosure requirements when dealing with a homeowner that makes it clear to the homeowner that the contact signed with the wholesaler is not a definitive “sales” contract, therefore making it less likely home owners will sign4.

Is it legal to offer to rent the property back to the homeowner who already lost their home to foreclosure when negotiating the redemption rights purchase? 

Do you think a duplex is generally a better investment than a single-family home for rental purposes?

I would focus on homes with dysfunctional floor plans.

They don't communicate well, don't take responsibility for their actions, do not clean or maintain homes well, and will shaft you when it's time to leave.Other than that, it's a pretty good system.