In my experience, finding cash-flowing deals on-market can be challenging here (1% rule can be hard to find) but not impossible.

Go back, re-read it, google the "hard" words you don't understand like what is "local government". 

Starting with a smaller property or a few fix-and-flip projects can help you build equity, gain credibility with lenders, and better understand the process before scaling up.Securing funding for larger projects can be challenging without prior experience, but options like hard money loans might be worth exploring.

@Amanda Bradley Tenant sounds like typical Class C with a credit score under 620.How hard was it to find this tenant?

And the unknowns of a build, as you point out, are also hard to gauge.

They only other thing I would mention is that correspondent lending can be hard to turn off and on if liquidity gets tight without hurting the relationship.

Lisbon is an obvious suggestion, but I have been here for hardly anytime at all so what do I know about it:)!

That's actually one of my pieces of advice for you... learn how to do your own book keeping so you know your P&L in real time at all times. 8) Hard to say without knowing the value of the place, CC&Rs, as well as any HOA fees/dues. 

It is hard to find a 2 bedroom SFH which might discourage more occupants but 2 bedroom duplexes are plentiful.  

Quote from @Timothy Newsome: Hello, looking to potentially use a hard money lender in NJ.