Diversifying your portfolio can provide stability and growth potential, especially if you explore different types of properties or geographic locations.

I'm exploring this as a potential investment and would love to hear from anyone with experience buying in JC.I'm looking for recommendations on good areas to invest in.

I even look at residential properties with key words for potential conversions to multi but those are also hard to come by.

Which cities and areas do you think have the greatest potential for appreciation?

Investment needs to pay attention to the quality and potential of the real estate.

If you can not find coverage with the agencies you have contacted, PM me and I will let you know the companies that we use that might do it.Because of your making payments to the owners potentially, I would look into commercial crime coverage and cyber liability. 

Builders do this a lot to add extra potential sleeping area without having more bedrooms than septic is rated for.I have seen people put beds in the loft after closing or even close in this area to make an unofficial bedroom.Just be clear in your pictures and description and you should be fine either way.

Instead, the income (or potential income) of the property would be used for qualification.

At least this next potential home is only a single story so I cant fall as far. 

This could be a great way to get started as you'll be at the property everyday and by living in the property not only will you be there firsthand to oversee the work being done, but you may also find new potential issues while living there.If you're looking to do this, I'd recommend a 203k loan to purchase the property and get some rehab funds. you'll just need to live in the property for a year before being able to lease it out to a tenant.