Unit 1 is M/M at $1100 (I will likely occupy this unit).

If you were to live in it as your primary residence first, and then turn it into an investment later, you would need to make sure that it is permanently affixed to its foundation (ex. bolted down, not just strapped down or sitting on cinder blocks).

You're a little strapped being in NYC because you won't get positive cash flow there on properties, but if you're willing to venture out a little then you can definitely get it and keep involvement to a minimum.

But it always seems an awesome deal comes along while I am cash strapped.

You boot-strapped your real estate business with hard work and smarts. 

Last time I did anything like this, I hooked my truck up to the corner of the house with a tow strap and tore it down. 

If people are going to be strapped for cash for decades to come, doesn't that mean that their ability to pay rent will be diminished and any evaluation of rental properties should assume declining rents instead of stable or growing rents?

I was told that I can start out by only doing the Buyers end of the deals as I am strapped for cash at this point.

Our market in Alaska, especially the Municipality of Anchorage, which includes the big city, Eagle River, Chugiak, Peters Creek and etc. and the Mat-Su Valley with Palmer, Wasilla, Big Lake and other smaller areas are "hot" now too.

There are two ways deal with it, passive (sump pumps, french drains) or active (7-layer bentonite waterproofing systems with drainage mat).