It increases your savings rate dramatically which helps you get to deal #2 faster and you begin benefiting from the appreciation/amortization that comes from owning RE. 

The rents are about to start increasing dramatically because of the transition to conventional apartments...I am sure I can get in touch with the owner...Is there any way to position myself to make an offer on this property?

I am focused on finding 4+ unit apartment buildings, so that limits my scope dramatically. 

I would then look for a duplex or triplex to live in one unit and rent the others, ideally covering a bulk of the costs, and reducing my monthly living expenses dramatically.

I did accomplish all of these things, however, while I was in flight school, 911 happened, and it dramatically affected the airline industry.

My guy also said rental rates took a dramatic rise in the time period you stated. 

There are zoning and environmental issues that can dramatically affect what you can do with the property.

I love Ridgewood (I lived on FPR) as a market to invest in-I think when the L shuts down the values are going increase dramatically.

Each of these variables will dramatically change the advice I give the individual asking me this question.

So right now you have an extreme demand problem, which is forcing the market up dramatically.