@Chase AlexanderRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Once you complete and rent/stabilize, you should easily be able to get into a DSCR loan.

Quote from @Rich O'Brien: Talk to a lender immediately!

Great question and always worth getting a second opinion.. especially when it comes to inherited IRAs.

During the diligence period make sure proper zoning/a 3 unit rental license is in place.

@Kyle LipkoRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Here's a https://www.irs.gov/businesses/cost-segregation-audit-technique-guide-chapter-4-principal-elements-of-a-quality-cost-segregation-study-and-report to the IRS website noting specific items that are included in the cost segregation study report.

I don't know the answers on taxes, but New Jersey is the densest state in America.

I did a cash out refi on it to buy 3 more properties.

It was the worst house in the best location. 5 acres just above a lake outside of a desired town.