In Kansas City you can find properties with cap rates ranging from 5 - 7+Big difference in projected cash flows, and the most desirable neighborhoods are trading closer to that 5 cap rate. 

Well I've had custom quotes ranging from 3k to significantly above already and it didn't cost me a dime to speak to their attorney. 

There are still plenty of neighborhoods where you buy small multi-family in that price range.

Once you know your price range and what you want to put down if using financing you can typically have a bank approval same day.Once approved if not paying all cash you talk with your agent or even self-explore and use the listing agent in most cases.

Select a larger area that is at least 30 minutes in each direction. with maybe a hand full of exceptions I am pretty sure you would be hard pressed to find a mix that represents the demographic cross section of this country and therefor a wide range of neighborhoods.

When adjusting for the DP assistance you mentioned, you seem to be approximately in that range!

The initial effect on mortgage rates was a subtle increase in long term bond yields, however in comparison to earlier this summer residential and commercial mortgage rates are down considerably.For example commercial lenders were in the 7%++ range just a few months ago, and recently are as low as 5.5%-6% and falling.

Right now our rental loans are in the mid 6% range without a buydown.

Builders are in the business to build, so they are very motivated to move their inventory.

And some claim it is a shortage of inventory (we have the most listed homes on my market since Q4 of 2012 just after the great recession – i.e. there is no inventory shortage).