@Roy Kinzer Rent control in NJ can be a tough pill to swallow and unfortunately has caused many of my deals to fall apart quickly once buyers/future landlords realize how strict the controls can be.

MTR is tough to gauge and is definitely depending on location. 

Price out as much as you can in terms of materials and estimates.

This has probably been the one thing that has helped me scale my portfolio so much and so quickly within the past 6 years.So the things that I would bring to the table that a new investor wouldn’t have access to (at least at the beginning until they build their own systems and networks) would be my knowledge and streamlining of getting financing, having deal flow, using vetted and skilled subcontractors, discounted prices on materials, systems in place to find tenant buyers, and streamlined refinancing and management in placeIt is similar to turnkey, only you don’t have to put 25% down and you walk into equity and the exit is already planed and the tenant buyer gets connected with a lender upfront to help them get ready to exercise in the option within 3 years.So that is what makes this different than other models.

That’s a tough one in my opinion.

And the reason why your "tale of two halves" will play out as you described.Demand:  This has actually been high almost all along, but rent growth hasn't materialized in response due to high levels of new supply. 

If your tenants aren't looped in early, it could make access for inspections tough.

Discussing these points can help you make a sound decision.I agree wit @Noah Corwick that permitting and construction cost make this a tough option.  

@Bryan Stengel, I think alcohol has been the tough one with the STRs, not sure about if you need license( hopefully someone will chip in ) , however there  always the liability part including but not limited to offering alcohol to people who are trying to quit etc.

However, for building materials, we get 99% of them from the four mentioned!