Realizing the scarcity (or at least my perceived scarcity) of ideal rental properties in the Jersey Shore/Central Jersey area, I thought, if I can not buy it - why not build it?

Ideally something thats a little undervalued, needs some cosmetic work, and maybe has an undeveloped second unit. 

Ideally, both.

Yes, ideally build where there are little to no permitting requirements.

While I know this isn't the ideal BRRRR situation, would it be a decent place to start for a first timer?

I have created a SS that would track the most ideal investing situation and see if others found this to be realistic/plausible.

The key for me is to have all this figured out before bidding on the property...then add some additional repair costs :) I find it really helpful to talk with investor/rehab, realtor colleagues in your area to get a feel of what the ideal marketable property for your price range looks like.Hope this helps.

Caveat: I deal in SFH's only at this point.

I think it's the ideal market, in my very humble opinion. 

Due to this risk having an LLC set up is ideal but not required.