Also, with being an out of state investor, picking a property that needs renovations seems really intimidating for my first rental. 

I am in the same boat and completely agree with you in that the rental market does seem to be changing quite a bit in recent times- much more difficult to get good qualified tenants these days and decent tenants seem to have their pick of the litter - often very flaky and uncommitted because there is so much supply out there.Rent price is definitely a key issue but what's the more likely outcome of a significant drop in rent price below market?

You have to do your due diligence up front, but once you put your money in it is very passive and you just get your monthly or quarterly return (if you picked a good investment).

Traditional banks typically use depositor funds to originate, picking and choosing which loans to portfolio and which to sell. 

check with your insurance agent.. also federal law dictates that when your owner occupying your 1 to 4 unit you don't have to follow the normal fair housing laws.. you can pick and choose who you want to live in the units .. now some cities or states may have overriding rules regarding this.. but federal law is clear.. on owner occ 1 to 4.. your exempt from fair housing.so you can have a dog and you could restrict dogs for others.there is a well known list of aggressive breeds that insurance companies wont insure.. this is easy information to get.

Would love to pick anyone's brain who is involved in that market if you have the time!

Looking to pick up another with them eventually. 

Looking to pick the brain of an experienced investor in this space in NYC as have some questions and running into a brick wall with DHCR.

So how many have you picked up, how are things going? 

If finding the right wholesaler were as easy as picking an apple from a tree, everyone would have one.