Circumstances always vary. 

Andrew Coffey The gray area varies from state-to-state.

While I am focusing on getting more familiar with the techniques and terms, there seems to me to be some realistic expectations you must have based on your home market, and the prices in that area.This leaves me with 3 options as I see it.1)   Continue to save more initial capital to meet the realistic barrier to entry- and stick in my home market.2) Entertain starting in different markets where the barrier to entry would vary significantly and therefore potentially require less initial capital.3) Attempt to creatively finance and stick in my home market.I guess what I am wondering is if anyone has any experience going the route of option 2?

The Replacement Cost varies based on the location.  

Now you'll notice rentals vary between NY and Philly is only $200 or less, but comparable property values varies by $100K.

Yellow letter: 1-2%Postcard: .5-1%Professional Letter: Vary you'll get a higher response rate that doesn't always translate into motivation though. 

I will definitely be relying on his expertise. 

It varies by jurisdiction but in my area most building code issues that were not in force when the property was originally built are not required to be remedied to get approval to renovate.

I have not lived in Troy and understand it varies greatly, but this area sounds good form the several people I've talked to. 

I wouldn't get a MFH that didn't cash flow- so it's not only relying on appreciation.