They are more break even if I am legally forced to rent it as two units. 

I won't pretend to know DC and NoVa; check areas local to you that were especially impacted by the Great Recession that have since come around in a big way - those will be the areas that your clients "want to live" & can use this program.

If you have something to buy it's worth it, but don't force yourself to buy something you normally wouldn't consider...With that said you can be little flexible seeing as you're hypothetical buying power is greater (by whatver you'd "lose" to taxes).

Air:  Heating and cooling, what type, all rooms covered, thermostat, window units, everything working, if forced air, need servicing of ductwork, etc. age function of unit, type of fuel used. 

Don't rush the process, because it might force you to buy a bad deal just to meet a timeline. 

If the economy cools, and interest rates rise, what impact does that have on the rental market?

In NJ there is a license status called referral and it eliminates the need for CE.

However, you're missing closing costs and down payment estimates, which could impact the analysis.

Between buying the property below market value, forcing the appreciation via rehab, and having a solid cashflow strategy, this sounds like a Killer Deal.

You still have several options, depending on if you want to invest directly in individual properties or be a bit more removed:Full-service turnkey investment: Should be mostly passive after you do your due diligence and pick a provider, but don't skimp on your homeworkYou choose which props to purchase, but have no control over tenanting choices, some say in large maintenance expensesAvg cost for solid B/B+ prop in Birmingham (and some other markets but this is the one I have data for, since it's my market) is about $100k per door; you'll pay market price for a tenant-ready, fully rehabbed propertyPartnering with someone who does the on-the-ground stuff while you provide capitalCan be passive if your partner really knows their stuff, but more likely you'd be fairly involved with the choices madeMore control since you call the shots with your partnerYou can pick which markets and price points you're interested inPotential for higher returns (ie buying distressed and then forcing equity through renovation) if your partner is experienced and can execute consistentlyInvesting in a syndicateMany investors pool funds to invest in much bigger projects like commercial space or large MFRs, or in larger portfoliosVery passive, investors are not responsible for project vetting or management, but you have no controlMay have higher bar for entry, some syndicates require large investments and you'll need to have liquid cash on handBuying shares in a REITLike an ETF but comprised of real estate investmentsVery passive, but no control over which assets are held in the fundHighly liquid, easy to buy and trade, lower bar for entryEverything is a trade-off between passivity and control, time and money.