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!

The seller was having health problems, could not afford to make the necessary repairs to the house, and needed to sell quickly, as-is.

I couldn’t afford Boston so we bought 24 units (12, 7, 5) in northern NH, which generated incredible cashflow, all within 18 months.

Depending on if this is a full rental or house hack, you can use market place and Craig’s list to find cheap furniture for common areas.

Wait till spring to buy it or just make a few payments till summer.Don't buy something where you can't afford to make the payments for a few months with no renters.

Is this a good strategy to use that income to make third house affordable?

From all that I read on the forums Kansas City and the larger cities in Ohio provide affordable markets for OOS investors to buy a nice beginning portfolio that cash flows well.

However, the neighborhoods that I'm interested in are more expensive than what I can afford at the moment.I was thinking of buying a cheap uninhabitable foreclosure, doing a complete demolition, and building a brand new *modular* construction.