If the property can qualify off LTR rents, I would advise going that route since you will have a favorable interest rate. 

We have high personal income with no consumer debt, so conventional loans are typically more favorable and DTI hasn't been an issue.

I also would look for a market that is emerging, has population growth, jobs expanding, favorable landlord laws, affordable for the residents.These are just some metrics.

I can't speak too much to North Jersey but I will say the higher taxes make it tough to have numbers work in your favor up there.

We negotiated favorable terms with the seller, ensuring a beneficial agreement.

@Scott Trench I agree that rental laws favoring tenants drive out investors which in turn creates scarcity relative to the absence of those laws which in turn drives up rents.

This is tough, eats into your margins and normally you'll pay more on your first few projects developing the relationships and it'll get more favorable to you over time.- ACTUALLY does good work.

Thanks for asking.I am fortunate - but to make the story short, I had a GC in place already (they are also my Property Manager) and I've known the owner for over 10 yearsSo far the numbers have been favorable and we are looking forward to wrapping up shortly. 

Together, we negotiated favorable terms with the seller, ensuring a beneficial deal.

I reckon I've personally acquired a least three properties on seller terms and have assisted at least three others in three years acquire properties with favorable seller financing.