I would make one distinction and that’s between an expense and a capital improvement. 

Now, you're going to pay for that in much higher rates that you'll get in FHA or even Conventional loans, but if you're willing to bite the bullet on that to get started, then it's a great tool to use.

If you want cashflow.. look for markets with low entry prices and higher rent averages.

As a multifamily specialist there, I do mainly two types of housing: affordable (DSS, Section 8, CC), and students.Binghamton University is a massive state school that's outpacing the higher-ups' expectations for growth, and has been for a few years now.

Because the expenses and vacancies are going to be a lot higher.

Expect higher turnover as people renting rooms tend to move.

I did check it out and got the higher rents like the analyst tool said. 

Quote from @JD Martin: Quote from @Jay Hinrichs: Quote from @Matthew Drouin: Small wine town is all I needed to hear.Seasonal tourism is usually not a great industry in which to build a sustainable business.There are probably higher and better uses of your capital near high velocity metro areas.We have small wine towns near our city in the finger lakes region of western NY.  

Don't use overly rozy projections based on self-management and renting it out forever.2) Higher risk - how do you know which tenant caused the damages or brought in the bed bugs?

I decided to look at other states because NJ needs a larger initial investment since house prices are higher here.