Such as the roof needs to be completely replaced (there is a ridge sag and seems it could fail, rafters aren't place correctly), the porch needs a larger joist as its sagging down as well, the basement still has asbestos, the basement needs waterproofing as there is a moldy smell and minor water leakage, barely update the 1st floor unit, update and correct the electrical (relocate a fuse panel in a bathroom), brand new panels in the basement with a larger feed coming in, concrete steps in front and rear of house are in need of some repair, the boilers may need to be replaced, replace a few broken windows(completely shattered, just a piece of plywood covers them now), the lower roof gutters were nailed directly into the shingles, there are no GFCI's in any bathroom or kitchen, and a few other fixes.It would be an FHA 203k with 3.5% down$9,600 per year in taxesGarbage is included in taxes, tenants pay gas and electric, owner pays waterThe 1st floor unit is a 2/1 rented for $1225, they have exclusive use of driveway, backyard and the basement. 2nd/3rd floor unit is listed as 3/1, however there is 2 bedrooms on the 3rd floor with a bathroom.

Well just based on your net CF you're only giving yourself just under 7% cap on a single-family rental, which I don't really like

But have no idea what their perceived CAP is (CAP is also hard to nail down due to almost no multifamily buildings being sold in the last few years in this area), nor do I know what their operating expenses are.My strategy at this point is (and please, any input is appreciated): Locate potential re-positionable buildings.

Real estate yes, bang nails....No.

a huge pile of clipped human nails stored right beside the clippersthis was in a $1M home in a gated community that also sported multiple nude portraits of the former owner throughout the house

Waiting on some market analysis before nailing down an exact location.  

Welcome to BP @Andrew Taing@Joseph Scorese and @Fasil Khan hit the nail on the head with what to look for and how to evaluate rental targets in NJ.

@Jd Martin nailed it on the head with the key benefits he listed. 

., Logan pretty much nailed it for you. 

@Sean Lambert nailed it If you've lived in it for two out of the 5 years prior to sale you can take the first $500K in profit tax free if your married. - a much better deal than tax deferred.1031 is only for investment property.