These are going to be my first self managed units, but my intention is to continue adding units in parallel with development projects. 

Equally important are looking in areas where the municipalities have ALREADY approved of them and provide benefits to the continued development of them.

I am based in NJ but I feel nothing will cash flow or be too sustainable unless I put in a higher downpayment.I am looking to do only long term rentals and keep it with Multi-family units in the beginning and then advance to appreciation type properties in developing areas.I was thinking if I should save up more money for a larger down payment or possibly look at a different area to invest since I am NJ and the high property taxes make this hard unless more capital is put down.

Or is it because its more for agents/lenders than investors/developers? 

These people are also concentrated in major metro areas with lots of red tape on development and limited space to build anything new. 

In my specific situation, the original developer is no longer in the area, and with no HOA or planning and zoning…..what if anything could be enforced against my plans for short term rental?

It took a little while to get them to trust me, but we've developed great relationships over time. 

(Source)*Google Office Building in Reston*Source: Global Tech Cities: Washington, D.C.Source: The Changing Face of the Dulles CorridorSource: Tech Cities: The Global Intersection of Talent and Real EstateBXP had plans approved in 2018 to build Reston Next, a 4.4 million square feet mixed-use development, and one of the first big developments to go up around the new Reston Town Center Metro.

Mary’s Counties.)The market here is often driven by government and military employees due to the proximity of Patuxent River Naval Air Station and government agencies in DC, The Southern is known for larger lot sizes, single-family homes, and a mix of new developments and older properties.

If the unit has issues such as ingress/egress, bad electrical, is newly developed space without meeting minimum ADU setback requirements, etc then of course the jurisdiction can red tag it and enforce it.