My real estate agent thinks I'll only get 1.1 million for my home but due to a few factors I think it should be more. 1.

Several key factors contribute to Buffalo’s sustained real estate prominence:1.

The biggest factor will be how long you plan to own the property or when you think you may refinance.

Are there specific factors you look for in an area to make sure it’s a good fit for this type of rental setup?

In your situation there is actually another factor that may work in your favor.Only the proceeds allocated to the sale of the building can be used in a 1031exchange. 

In a slow market homes sit and rot, they are on the MLS forever and the longer it sits, the lower the price goes to find the sweet spot for just the perfect buyer.

What factors should I consider when making this decision?

@Abdul HafeezRates and LTV depend on many factors. 

It's called a payoff statementif it's a big lender you will not buy the loan as it will take forever, you are better just paying it off. you then can foreclose based on the total balance owed to you which is both loans and any accrued interest. regarding fixing property or selling as is, that really depends and needs to be evaluated on a case by case basis 

You also have to factor in time limitations.