I wasn't aware of rent meters or any websites that pull this data for you, thanks.

Is this allowed or will it break any laws I'm not aware of?

Here in Canada there many, many folks, who should know better,  who have subscribed to the 18-years of price appreciation shall only continue upward theory.I, on the other hand, am building a war chest to take shopping after this thing comes un-corked.

Like MA, it appears that NY requires a 30 day notice to quit for tenants at will: http://codes.lp.findlaw.com/nycode/RPP/7/228 Also, be aware that, if NY is as friendly towards tenant as MA, your client is going to run into problems getting the tenants out in the winter if you wind up in housing court.

3rd party appraisal can mean the deal gets ruined with low appraisal, in house could be potential  a conflict of interest on lenders part.Be sure you are comfortable and aware of any nonrefundable fees should you start going through on a deal and processing the loan but you fail to close for one reason or another.

I would keep it a community safety and command awareness type of conversation.  

Are there common pit falls I should be aware of?

I also am aware of local events like Clemson Graduation, football games, fishing tournaments etc that drive demand and price for our Lake house.

Is there anything I should be aware of before going through with the deal?

In general, you need to be aware that when you invest at the very low end of the market, you have a much higher risk - distressed properties, challenging tenants, etc.