Find out what works for you and your team on smaller deals then scale up once you start to get comfortable with multifamily. 

We were able to refinance with our go to bank at a decent rate in this environment which allowed us to pull out our initial investment and renovation cost.

I have spoken with an agent/PM in Detroit that somewhat scared me away from the Detroit market (eviction rate is currently 8% down from 20% 5 years ago and such a different environment that I'm familiar with).

Long story short if you are committed to house hacking the sky is the limits and there is endless possibility, it really comes down to your comfort level and where exactly you need to be in New Jersey.

Make sure to keep tenants comfortable during the process, and leverage property management companies with investor connections for potential buyers.Good luck!

I think I'm speaking for myself in terms of a price point that I'm personally not comfortable with over there since it is not in my own buy box yet. 

Those that deal with the 12 1/2 % remaining have a chance for much better success OVER THE LONG TERM, in all economic environments.  

One mistake or big unexpected expense could ruin you if you only have one or two rentals that are not cash flowing.That said, especially in the current environment, if you are coming from a very strong financial position then there may be times where it may fit your goals to invest in a highly appreciating area with no or negative cash flow.

For an unrenovated 1+Den/1BA LTR in our section of Northeast though, $1,300-1,400/month is certainly in the ballpark of what I could comfortably get with some very minor improvements to the space between tenants.So all that being said, I think your target of $1,500-1,600/month for your 2BR units would be more than doable. 

Don't see any major red flags here, so long as you are comfortable in the low income space.