I have an agent that's recommending a new construction in that zip code.

Rental property is extremely tax advantaged based on the current tax code.

Then compare that to median sales prices in a given zip code.

This question is most likely best for a lawyer familiar with local regulations and code.

small homes don't work. we build a stacked triplex much more affordably. density is key and vertical is the key. use that land cost and fixed costs more efficiently. everything we build for apartments is less than 700 square feet and only 2 beds and all 3 story walk ups and all triplexes. by building codes 4 family is commercial and also becomes cost prohibitive.

Not to mention that night I slept on the floor of that flip house, I could see all the work that wasnt done, wasnt done to code, and was done poorly.  

What area code should I look for in my budget and best area possible for that budget?

I want to be a part of this market because I know I can offer tenants a well-maintained, up-to-code home.

@Akil MitchellFrom my experience, when buying a property, it's crucial to assess local building codes, potential de-conversion costs, and permit requirements.

It still is very possible to find properties that meet the 1% rule without much difficulty; but it’s also tougher now to find a mortgage for anything valued under $100k – regardless of condition or P&L.To me, the shenanigans Code Enforcement continues to play on a new owner after a sale plus the recent increase on the annual rental registration fee really discourages buying more in the City.