So far besides a few books and a burning desire I am a complete novice to this.

They are not very mobile and this neighborhood looks about the same, demographically, as it did at the time of the Race Riot of 1967 where buildings all around your property were burned to the ground.

He was burned out.The Problem is two fold:Cash Flow on Paper ≠ Real Cash FlowMany investors assume rental income will flow smoothly, but that’s rarely the case in high-risk areas.

He told me after the sale that he did not know the house had been torn down and that there was a NEW $17,000 demolition lien on the property that transferred to the new owner, him.At another sale several bidders were bidding on a house that had burn down (maybe by the owner) a few days before the tax sale. 

Sorry for everyone who got burned. 

Let's say you burned through $150,000 in appliances and "more costs", ya still have $500k vs $250k. 

Multifamily is incredibly complex and if you don't understand the metrics or calculations behind it, you're going to get burned. if you're just plugging numbers in until it "goes green", you are either going to miss out on deals or buy something you shouldn't. 

It makes me wonder how investors will respond when seeing people getting burned in C/D-class.

I have a buddy who invested in a project in Las Vegas that crashed and burned.

They've probably been burned before.