To make this deal work, I would need to pick it up at $1,975,000, which would be a CAP Rate of 8.92%, providing me with a Cash on Cash ROI of 11.84%.

North Jersey is a tough market but with time you'll find it is not as difficult as it first appears.

If you are in many states, this can be slightly more difficult, but there are several options out there.

Therefore, that makes for better opportunities with multifamily apartments, anything 3-5+ units, because if you analyze a specific property, its true NOI (not proforma), and the market value based on the current CAP, then you can make the appropriate offer. 

Large companies do this with reverse mortgages, but I think it would be much more difficult for a smaller investor, because you could be waiting 20 years or more before you acquired the property, while paying for it the whole time.

Rents in Houston will cap off around $1400-$1500 a month, except in higher-end areas like the Heights.

The fact is that good flips are getting very difficult to find for those of us that do it all the time.   

I heard about R.E.O’s, Cap Rates, C.O.C on return.

Just a warning though, in my area duplexes are often held extremely long and rarely sold, finding good duplex comps to compare is difficult in some areas.

However, i am not too sure if the town is difficult to rent out?