Jersey City has been extremely hot for years, and like @Michael Klauder said, the competition is quite fierce and you have to know the area well as the "vibe", so to speak, could vary drastically from block to block in these bigger cities.Hudson, Essex and/or Passaic counties have multifamily inventory, a high percentage of renters, and convenient transportation options for your commute into the city, so those would be a good starting point for you.

Priced too high, rents are too low and investors do not want to gamble loosing a tenant right away, the leases are wonky or maybe there are bigger issues (Estate, Something wrong with the property etc).  

You also might have to make the drive to Houston, don't settle for someone local for convenience. 

Unless a financial situation makes it more convenient to live there as well. 

He's taking a small cut for the convenience but he said it is worth it!

Appreciation is a bit of a gamble, can swing wildly up or down, and doesn't pay off until you sell the property.

I am on a hill for drainage, behind the Home Depot and WalMart, two blocks North of Brandon Blvd. convenient to everything and away from the noise and traffic in Tampa.

If you use $40k to take a trip to Vegas and gamble your money away, then I would go with $300/mo. 

You will schedule an inspection within 48 hours or I will come in and inspect at my convenience."

Convenience matters!