The issue I'm running into is that I'm thinking of investing in my hometown area - where I no longer live but still have family - and I believe more emotional perceptions may be dictating whether I think I want to invest in one area over another.

The way you make money in real estate is finding great deals .... allowing someone to dictate a "good" deal means youre definitely not getting the full benefits, howeverrrrr If you're looking to buy for education/ mentorship/ or just good rapport for other future deals - pull the trigger! 

The answer to that will largely dictate where you can put a first floor bath, unless you plan for this to be a more extensive project.

IRS rules dictate that deductibility follows use.

If they find a similar property with similar updates, that will heavily dictate the market value of your home. 

Basically saying the federal government couldn't dictate what is essentially a state issue.

That will also dictate where you can afford to purchase.

Does cash flow perspective dictate LTV percentage?

To answer your question yes we have roughly identified what we are wanting to invest in, - multi-family in specific areas of NJ that being said we do have timelines extremely defined and once we are past those then that will dictate the cadence - as of now we are just making sure that we learn as much concepts as possible and see how that evolves

I figure it's always best to start high and work my way down if the market dictates.