As a person who has lived in NC & SC and Phoenix, I would highly suggest AZ.

Water meter-water company.  

If you're talking about building an interior wall to create a bedroom, this could work so long as you aren't significantly reducing living space compared to the competitive rentals. 3 bedrooms with a tiny living area could cause problems.

I have not lived in the areas, have a friend that lives in Laconia so likely will be looking for a 2-4 unit that we will live in and work on fix and flips to build capital for the next purchase.Appreciate the support everyone! 

@Marc Robinson what's the lot rent, who pays what utilities and what's the source of the water and sewer?

Where to start, choosing an agent, DSCRL alternatives or similar programs, etc.Thanks KamalDo you live in Puerto Rico?

I have lived in Arkansas my whole life, lived in all parts of the state, and have been in real estate for the last 8 years here. 

If you're willing and able, I do recommend the "house hacking" strategy which is just a fancy name for buying a rental property and living in one of the units, because you'll get very favorable financing - an owner-occupied fixed-rate 30-year mortgage.I'd also say, analyze that property as if you won't live there and it's a pure rental, and make sure the property is still cash flow positive if there's a tenant in your unit because then you'll know if it's actually a good investment.And when you analyze it, include payment of a property manager in your #s because if you don't, and doing so would make it go cash flow negative, then you've just bought yourself a job because you literally can't step away from managing it without losing money.

My rental condo in Asheville, NC was spared damage from the flood, but when the city finally turned the water back on a few days ago, they somehow overpressurized and blew out a fitting inside a wall. 

I assume you are mostly looking for leaks and water damage?