As our first SFR, the numbers don't look too attractive, but for a buy and hold scenario over the course of the next 5-10 years, the increased equity adds an additional incentive to buy.My question is: Is this just my perception, or could this be reality?

My general perception is that "southern" Union City (e.g. south of, say, 15th St), and further west (closer to North Bergen) is less desirable, although the border between Jersey City and Union City is nice, and east towards Manhattan (on, say, Palisades Ave) is very desirable.

Even though the cost delta between electric and oil is far less today, perception trumps reality for 95% of people; so just the words "electric heat" may affect the marketability of your units.

"fell off the boat"  : )@Bruce GardnerI think a lot of the disparity in perception of CPA value comes from 180 degree misunderstanding. 

The best we can do is to think we understand; our perception based on our own experience and what others have told us.

Do your due diligence in driving around and scouting the area to get your own perception.

I would much prefer an empty apartment to one filled with a questionable tenant.As @Jonathan Taylor Smith said, you need to have your qualifications in writing so as to minimize the perception of discrimination. 

I live on the west coast for a while and there is a perception that everything in the Midwest is cash flowing farmland.

I recently had an offer get rejected for a cash offer 20k less than my offer because of the perception of VA home loans being more difficult on the sellers.

Your detailed breakdown helped me revise my perception of hard money costing too much to acquire properties with.