The property comps in the $70K - 75K range. 

Workforce class C housing in NYC ranges from $50k -$200k+/door.Not sure what type of capital you have, patient or fund equity... however a lot of owners in NYC are basically buying the dirt and/or are buying as legacy assets and capitalize on the appreciation. 

You can do some prelim exploration by searching different towns/areas on wikipedia & Zillow to get a sense of what towns have the price range & type of inventory you're looking for.

My credit score ranges from 650-705.Property 1 $1.7 million value$1.208 mill mortgage$9800/month rental incomeProperty 2 $800K value$277K mortgage$3600/month rental income My goal is to take cash out of Property 2 to reduce the principle of Property 1.

Here is what we have already decided:Keeping the range, as it is in good condition, but the range hood and dishwasher are being replaced.Wallpaper is going far, far away, replaced with a tile backsplash.

Anyway, there is a finite number of apartment deals in the 10 million range in your county. 

I've gotten pre-qualified by a number of lenders for a rental property (SFH) in Knoxville, TN and all of 30 year fixed rate quotes range from 4.9 to 5.1 percent.

Again, I haven't bought my first property yet, but I thought expenses ranged from 45-55% of gross income.

What about starting out with a condo or townhome which is much more feasible for my target price range?

This means that typical down payments range from 5% – 35% of the loan amount.