It also allows to finance the rehab cost into the purchase price.  

If they cause a sewage back up because they are flushing wet wipes and the cost of repair is $760, who is paying for it?

And then I'm keeping the smaller ones and doing some bigger ones (3bedroom 2,000 to 2,400 sq ft) that will remain as holds.Keep in mind that as a builder my cost basis is better than people paying retail. 

I'm looking to purchase my first SFR in NJ, and Trenton caught my eye due to the low entry point.

I have some experience investing in my local market but I am new to the US real estate market and am focusing on investments that offer a strong ROI.I am considering various types of properties and I am particularly interested in mid-low priced properties.

Banks wont lend because the value of the property is too low. 

During the recent period of low interest rates I acquired some rentals with a 15% down payment in order to stretch my cash further toward down payments on additional properties.This helped with the down payments and my math showed that even with a little higher interest rate compared with 20% down and the PMI until I was able to remove that this would still be the wiser choice. 

(To qualify for section 121 tax exempt on portion of sale.). 2) what do you think your net profit would be after selling costs?

Taking it nice and slow and trying to not make mistakes that cost time and money.Thank You for the Input in Advance,

Particularly in a college town there are a lot of opportunistic property investors and low quality property managers.