Take a look at the local market and see what some 2bd/1ba homes have sold for and what they would rent for. 

The next steps will involve accurate construction cost estimates by a licensed contractor (or two) and connecting with a lender (possibly current local bank) for construction financing.

Gone are the days where you can buy a cheap 100 year old multi-family off the MLS, turn it over to a local property manager, and make a great cash on cash return out of the gate.

My properties are in three different states and I use local property managers for full-service management. 

Google search some local site in the areas you're searching too.

We're local and we'll come to you.I remember years ago hearing that in direct mail, there's a 3/10/30 rule. 

The other areas give a little more privacy protections but for local investments, that won't be a huge benefit. 

Local vs out of state can mean finding a good PM in both cases or managing the local one themselves.Starter homes are usually good.

If you have extra taxes then you should absolutely account for them.Contact Vrbo, Airbnb and your local authority and see if they are automatically taken out or if you need to submit the extra taxes.

Here's a strategy to try.Go to your local library (or their online portal).