I’m not sure what is the best option here, if anyone could shed some wisdom that would be immensely appreciated. 

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

There is 3-5% down payment options you can use.

What was the quality like compared to local options?

I wish someone had told me about this when I bought my first place.I run a Property Management company and would only recommend a property mgr if you are cash positive or physically cannot tend to the property.  

Focus on positioning yourself as a problem-solver with a compelling vision, and don’t hesitate to seek mentorship from experienced developers.

For funding, explore options like FHA loans, personal savings, or creative financing, and focus on New Jersey markets that align with your goals, such as Newark for rentals or commuter towns for house hacking.

Personally, I wouldn't offer SubTo or a Wrap, For reasons I've written about fairly extensively. https://www.biggerpockets.com/forums/70/topics/1227199-the-m...However, I would sell on "Lease Option" and that may work for you.

Inflation will push up rents over time, so at some point you will be cash flow positive.

The other option, how I found BRRRR and learned some basics of it, was the Bigger Pockets book.