I want to get into real estate investing, but my current 9-5 job is in San Diego and I am now faced with the facts that with a 2k rent + living costs... being financially free will not be attainable in the near future unless I make a fundamental change to reduce expenditures.  

Michael - Many people have ample time and abilities to be successful investors on their own. 

"This home could attain a 12% cap with over 1k, month cashflow"  I would live in it for a year have a roommate to offset my mortgage payment (not enough to cash flow) and eventually move out.

They're looking for some arbitrary cash on cash number that an experienced investor may be able to generate, but that might not be attainable for them.

Having the ability to build real wealth thru leverage is much more attainable then storing cash.

I have taken a peek at buffalo a few years back and I would imagine something similar is attainable there.

My home was not designed as an ALF, but minor modification fell on the lap of my tenant, but he was definitely well prepared and had ample experience within this realm. 

Ample cash reserves to deal with these issues and padding out the rehab budget for unpleasant surprises is key.

NY area is off-the-charts in terms of trying to attain decent returns.   

A maximum $200k price point provides an easy/attainable downpayment to just get in the game.