Understand that there are a ton of details too numerous to explain in a post.

The market has been pretty slow, however I have had numerous requests to rent. 

When I set up a market search I put together a spreadsheet that allows me to know the square foot sales price (I pay less attention to list prices) and I try to figure out explanations for wide variances.  

Although this is very broad explanation, I found this on the HUD website, "A primary residence is a property that will be occupied by the borrower for the majority of the calendar year."  

Also, how do I calculate my ROI - I've been looking at a lot of formulas out there and need a better explanation. 

There are numerous reasons why I would like to start with MF, rather than SFR (economies of scale, fewer investors to compete with, allows for use of professional management, etc.).

Moisture in our environment is a real issue and although I haven't heard of this situation, your uncle's explanation makes sense to me.  

I'm not understanding your explanation.

The advantages of investing local or nearby are numerous and the disadvantages of investing 1000 miles away are numerous.

You should also present the appraiser with at least 6 comparable recent sales and 6 current competing properties on the market, with explanations regarding how the subject property is similar to, or differs from, those properties.