But there are a lot of new restaurants and bars, as well as a brand new luxury apartment complex.I am still personally a hugh fan of Pleasant Ridge because of the spill over from Hyde Park and Oakley where the rents are insane.

We were taking advantage of their >500 square foot house additional allowance by adding a master suite to the main unit.

Now I have a option to connvert it to ADU or master suite.

That could be a great way to find and stay engaged with local investors, realtors and opportunities. http://www.biggerpockets.com/alertsYou can also search for other investors or brokers in those target markets and follow their journey on Bigger Pockets here: https://www.biggerpockets.com/search/usersAnything you can do to build your network in the region will help you find the realtor, and eventually the property, that suits your needs.

We renovate to "luxury workforce", add the nicer amenities and get a premium tenant as well.

The high-priced rentals will drop when the market turns and people can no longer afford the luxurious.

Is it luxury and amazing to be in a multifamily that's probably not the nicest and have your tenants next door?

I live in Bayonne and have seen progress towards positive change since moving here (luxury apartment complexes, ferry, Costco, Military Ocean Terminal redevelopment, bike share, park improvements).

Go luxury sooner, so your commissions are higher than the sub-$300k stuff that a lot of Realtors are more comfortable doing and if you land a big listing, you could always partner with another more successful luxury Realtor who would be happy to co-list and cover the cost of the luxury marketing if you're bringing the listing to the table...Hope this helps! 

I think the best course of action for you is the one that plays out to best suite your time, and business plan.