Not sure if it's worth it to gain the extra appreciation while also having to manage multiple properties that are a bit of a drive away and have unknown maintenance requirements.

There are a few others here on bigger pockets who have endeavored to do so and can attest to this  (but I will not name them).Basically AHP bought 1000s of low value non-performing loans, these require the most oversight mainly due to the condition of the properties. 

For rentals, they can work well if the HOA is investor friendly and cash flow numbers make sense.Financing can also vary, so it’s worth checking lender requirements for condos (warrantable v non warrantable) versus SFRs

That's too much effort required to earn a few dollars on a short-term stay.

Ideally, I'd like to find a balance between affordability and potential for appreciation.Also, are there any common pitfalls or things to watch out for when buying a multi-family property in Jersey City?

We paid ours off when our balance was $125k, but on a 15 so payments were fairly high at $1732 PI.

At the same time, I am also using this opportunity to move that capital into an LLC, and would look to extra financing to purchase a new property or properties of equal or higher value (per 1031 exchange requirements).

Investors normally get there payments on time, most of the tenants stay for long periods of time because if they move it is a hassle for them, and since section 8 requires that the property stay in certain condition it will help keep the maintenance costs down. 

Buckets are the credit/exp requirements for leverage and rate. 

We would greatly appreciate your guidance regarding any requirements, limitations, or recommended procedures in this context.