First red flag, that part is extremely expensive (like new unit expensive), he may be steering me to buy a new unit which is easier and more straightforward than repairing.

Real estate is always expensive.

I would get an inspection on every property even if its a shell . maybe there's something you don't see with foundation etc . few hundred for an inspection should just be a part of the expense of doing a project 

From my knowledge it really depends on where you are in Newark, I know there are many expensive areas and not so expensive areas.

The increase in interest rates follows a similar pattern as the one seen between 2004-07, however I believe that there is one major difference that makes today's market less likely to see a similar surge in delinquencies: a lower % of variable rate mortgages (Figure 2).

Scale with lower class properties for cash flow or do you want appreciation plays in strong primary or secondary markets?

Learned that STRs can be expensive!

Since its a legit business, this will simply be a labor expense and expenses reduce your AGI(adjusted gross income) which lowers your tax liability.

There are lenders that can help with lower loan amounts/purchase prices, you just have to know if the lender is capable of it going into the process.I hope that helps, happy to assist where I can.

Your CAP rate will be dangerously inaccurate if you calculate expenses incorrectly so let's break those down.Utility Set-up- As an overview you need to know the difference  between city-provided utilities and onsite such as Septic Tanks with Leech fields, lagoons, Wells, EtcGetting more specific what utilities are maintained by the community, paid by the community vs the tenants.I will give you a quick example, I own a park with a bunch of multifamily manufactured units of which I pay the electricity bill.