It also has considerable risk involved as well. 

Aim for 6+beds and theme 3 bedrooms strongly and you should do well.

I think this program is an incredible way for new young investors who might make under the income limit, to house hack in high cost areas, which will appreciate well, and then afterward they can buy more rental property potentially in cash flow areas.   

I agree....but the OP should still bear in mind that these Blue cities will still have very tenant-friendly laws in place, so that should be weighed into the decision as well....IMHO. 

Once you figure out what type of property you are looking for, laying out the repayment period for investors will help as well.

That clarifies some things pretty well.

And does the driving time count as well?

I'm investing in accounting services with Ximplifi to do this as well as building out the reports I need to see daily.

If you're considering it as a vacation spot as well, look for an area that excites you and offers interesting attractions.

My clients reach out years after their purchases to run through things like this because we know their property and deal just as well as they do.