Finding Small 9-cap Multi's for 1031 Exchange...

[Derek Clifford]

Hello BP Community! Seeking your advice on finding small multi's for a 1031 exchange I'm in the middle of now.

I have about $75,000 in cash in my 1031 left to spend which I intend to lever into about $300,000 worth of property (with 25% down). I am having a hard time finding 9-cap or higher small multi-family (2 - 4 unit) properties that would work well in a buy-and-hold scenario within my markets (Indy and Cleveland).

We have been contacting agents and wholesalers, but not getting good enough numbers on the leads/listings we have. Should I back off trying to find rent-ready multi's and focus on more rehab-heavy jobs? I avoided this approach up until now because I wanted to avoid using hard money and get right into a FM / FM mortgage from the start.

Any thoughts out there? Should I start looking for these rehab deals? Should I look to move to a different market? Something else I'm missing?

Thanks everyone!