I agree with your desire to move into the MFU space.

Not all properties are lawful for adding a 3rd unit as you desire.

I have no desire to hold onto those class C suckers for the next downturn, but holding my class B stuff no problem.This is how I've played it and why ... but every market and every investor is different.

I personally have no need or desire to do this since my local market serves my investment needs quite well. 

As a project manager (and if you are running your construction projects, or an owner doing some of the work on site, you are THE project manager) you need to have a plan for the entire project in 3 different areas: Scope- what work is to be completed on the project to achieve the desired result, Schedule- a reasonable expectation of time required to accomplish the scope, And budget- the money needed to actualize the scope within the defined schedule(also known as the project constraints)There are many ways to deal with all of these constraints and different projects require different strategies, but the important thing to remember is that the 3 constraints are tied together- if one changes, the others need to adjust as well.

This is a duplex in a very desired area of South Jersey with easy train access to Philadelphia.  

Let them be your practice run before you approach the more desirable ones.

Part of that motivation is from my desire for him to trust us enough to buy more of our buildings later, but most of it is my being flabbergasted that this man bought these buildings without even looking at them and is entrusting me with his and his family's future.

But I'm curious if there are any desirable markets that are becoming more affordable.

I live and invest in Brooklyn, so what I say is only applicable to here though I imagine it probably applies in the more desirable areas of Queens (Astoria, LIC, Woodside, Sunnyside, Ridgewood, etc) as well.Basically, at your budget, what you're looking for (living rent-free within 30-45 minutes of Manhattan) is not going to happen -- at least not in Brooklyn.