Meanwhile, next month he starts neglecting rent payments all over again.I always found that GOOD tenants love the flexibility that the MTM lease affords them if their personal or work situations changes.

It seems to me that tenants are no longer able to afford the high level of rents they used to pay.

You would be out of money and not be able to afford those things.

Many decide to invest out of state because of affordability of properties and more potential properties available.

What is the need for affordable housing in area?

I can afford the 25% down payment, so that is okay - just thinking if I can find a renter in that area for the most part.Thanks!

Your network will help you rehab affordably (which is crucial to make investing profitable) and give you experienced people to review your numbers on deals. 

Just remember, not everyone can afford market rents and you may not be able to afford all 3 units empty at once. 

I am currently based in NYC  considering to make a move (within the next year) out of state with the goal of transitioning to a more affordable state/area in the country.

Always do a thorough review of your numbers and do not invest any resources you cannot afford to lose.Best wishes on your real estate journey!