The economy of scale works better for MFH than SFH.

For the $900 we’d gross, it doesn’t make sense to tie up the $360K in equity.Frankly, this economy has me questioning if I want to wait for the next downturn to invest as interest rates are nearing 5% and property values are beginning to stagnate as we approach our 10th year of economic growth.

As in, a 10,000 person town I'd stay away from - you want a reasonably diversified economy...Here's the main concern I have with your startup plan - Inevitably investing out of your area will put someone locally in a stronger position with regards to negotiating. 

When down cycle happens lenders tend to go in a defensive position when they see a declining economy.

In 4 years the economy tanks and the property is now worth $100k.

I know it was a little bit of a read, but the process I took has helpful in understanding where I stood in this time in the economy. 

I like texas (robust economy, CA & northeast transplants fleeing high taxes, no state tax, pro landlord)..however i hear dallas, austin, san antonio, and other parts are not cheap per se anymore (same with florida).  

Economies go up and down.

Hello @Sheldon Peart  If you need financing to purchase a residential property with 5 doors, you will need to get a commercial mortgage. 4 key factors affect the value of your home: Location of your homeSize, age, and condition of your property, including any renovations or updatesThe housing marketThe economy and interest ratesHere are 2 ways to help you estimate the value of your home:Talk to real estate agents – They may estimate its value for free and should be able to tell you what other homes in your area have sold for.Pay an appraiser 

Remember that the broader economy was suffering as well, that's why they called it the Great Recession.