If I was to talk with all of these potential investors.  

That was done so as not to tip off potential targets of subpoenas and lawsuits.

Your biggest potential obstacle in NJ is your tenant since it is a Tenant friends state.

Are vacant properties in Texas a better investment compared to other property types, considering factors like acquisition costs, demand, potential appreciation, and holding expenses?

Generally there is consensus that DSCR Lenders can only offer a 1% prepayment penalty for up to 3 years in MI, but some lenders have recently reportedly been flaunting this rule - I would just tread carefully here in this area, generally not advisable to get potentially tangled up in a flawed legal doc with a non-sophisticated or fly by night lender

As far as financing, I have considered  1) an FHA loan with a cosigner, and 2) going off market and approaching many owners about potentially seller financing.Any and all feedback, advice, and info on potential pitfalls would be appreciated!

Market exposure- what is the existing density of the rental units, what is the potential existing market, what competition is coming online?

While I’m just starting out in real estate, I’m determined to build equity and achieve financial freedom through thoughtful investments.Here’s a little about me:I’ve been exploring wholesaling and land investing as potential entry points but haven’t made my first deal yet.

Sponsor is realistic about current market conditions, and is humbling themselves on current portfolio, while also realistically appraising current environment as a potentially better buying opportunity than the peak 3 years ago. - Sponsor learns from mistakes.

Costs may disqualify the opportunity even though in theory it can be converted.I believe its important to set expectations and if this is an 8 bedroom RSA5 home just as an example you very well could be looking at a building that's obsolete and again even if it is RM1, depending on the costs of the conversion, still potentially obsolete.