If the only MFH options you're finding are in areas you're not comfortable with, it might be worth focusing on a duplex in a better neighborhood.Saving up for a larger property later is a valid approach too, but keep in mind that real estate tends to appreciate over time, and waiting might make it harder to enter the market later.

There are no laws restricting mark-to-market rents. 

Look at all the population growth, job growth, and companies moving/developing here - it's absolutely blowing up and Columbus is one of the hottest markets in the entire US. 

Recently, our real estate agent did a market analysis and estimates we can sell for between $575K-$585K, resulting in a net gain after all of our fees of about $100K.

I think it's the best market in the whole country in my opinion.

A great place to start is https://www.biggerpockets.com/meet which you can use to find like-minded people in your area and every other market across the nation that you may consider.You'll find some helpful tips at https://www.biggerpockets.com/starthere.For tips on how to get the most out of BiggerPockets, check out: https://www.biggerpockets.com/rei/biggerpockets-com-tutorial/The BiggerPockets Keyword Alert System is an awesome tool: https://www.biggerpockets.com/renewsblog/2012/12/1...See you on future threads!

There is a high concentration of those in Texas (about 2/3) but it is relatively similar in most of the markets we lend.

How do you go about determining market rate?

I'd recommend looking at costs. your build cost is going to be well over other homes because of the fixed costs like slab, Hvac, roof, etc. check the market drivers and weight the benefits of short term versus long term. long term is no furniture and help pays mortgage but at this size it doesn't really cover everything. we didn't find a lot of economies of scale in single family detached. can you build more than one unit?

It's real estate in markets with population growth, it's pretty hard to lose money if you get an inspection and appraisal."....Wishful thinking at best when buying C/D properties.