Maybe these outside investors have pulled down local return rates to national levels. 

:-pThat small microcosm of Midtown vs. the rest of Sacramento is representative of California vs. the rest of the nation.

Is there anything I need to be careful about other than obviously not discriminating against race / religion / nationality, etc?

Absolutely avoid the big national banks.  

Interested in acquiring small multi-families / commercial properties in and around NY, NJ, or eastern PA.

Based on their website it looks like they have experience and knowledge pertaining to REI and they are a national company. 

Canadaigua National Bank is who I use. 

The reason being is we have much higher property tax than the rest of the nation to make up for the lack of state income tax.

These are typically viewed as long term management free vehicles that provide national corporate tenant guaranteed income with no hassle.I assumed that she wasn't really interested in developing a portfolio or even being a landlord. 

Recently, my offer was accepted for 5 units in Eastern Milwaukee.