Commercial brokers from all main brokerages in the area, networking with other investors at the local REI clubs, joining professional association for building owners. 

I already used Bigger Pockets tools for that purpose.

And that's not said to be demeaning to appraisers, who do serve a legitimate purpose (mostly to prevent fraud in lending).

But I don't think the risks of ramifications from trying to level it for the sake of one bedroom (out of 5 bedrooms) in corner of the house is worth it for this price range just for aesthetic purposes.

What are the main factors YOU take into consideration to decide what market to invest in?

You're better off asking your bank.I'd think that because they are individual parceled, they wouldn't be treated as a regular 16 unit MF for tax or any other purposes. 

My main concern is that I don't have any construction background and I have never rehabbed a property before so I don't have any real world experience regarding the costs associated in doing so.Once I find a deal that looks promising on paper and I physically go walk the property with my realtor how am I supposed to determine a rehab estimate without any prior experience? 

Purpose built rental properties are priced normally by cap rates.

People who hold large sums of cash outside the bank generally do so for the purpose of tax evasion.

There are several.The main branch in Eldora.