I'm looking to learn from others that have taken the landlord approach on either SFH or MFH as their first acquisitions and what are some of the pitfalls to look out for.My background, I'm an Army Veteran that left that world to seek out new opportunities as a civilian.

Pitfalls?  

Another pit fall for out of state investors is not understanding the climate.

Lots of pitfalls with section 8.  

HiI would like to get an idea on how an owner financed commercial property deal might work in New Jersey - middlesex county and become aware of the pitfalls so I know what I'm walking into.

I know there are potential pitfalls and lots to figure out about this plan, but I'm specifically curious about how this type of arrangement would affect the owner-occupied mortgage situation.

Are there any pitfalls?

I think it would help if you can give some specific examples of pitfalls to look out for. 

However, having lived in an area similar to this previously, I felt confident that I could avoid most of the pitfalls of investing in a C class neighborhood as long as I stayed somewhat active in its management and check ins.

There are pitfalls in the entire process...from sourcing, analyzing, scoping the repairs, doing the repairs, leasing the property, managing it or flipping it, how you do those things ultimately can make or break your investment goals.