Most often it's in free & clear properties but, in a high enough desire area like these, and with low enough mortgage balance, yup, some can 100% get enough on the sale to have it all make sense because as @Jay Hinrichs has pointed out that in these areas the majority value is in the land not the structures on the land. 

If the seller says, “Oh no, feel free to give us an offer”, then there is your invitation.  

If you’re interested in more details, feel free to reach out!

I suspect the owner could sell the property to a third party free and clear of your lender's claim to the income stream. 

Feel free to DM if you have any questions or would like some resources on the topic. 

I have referred a loan out of state based on NOI, cap rate at purchase, room for increase income and purchase price vs market value.Maybe I didn’t articulate the intent of the post as clearly as I hopedFor anyone who has bought multi family out of state, “what are gives you the warm and fuzzies about a deal”:Obviously not cap rate, but maybe vacancy rate,  Cash on Cash ,GRM, IRR, Unlevered free cash flow, Cities over 250k?

My approach is conservative and focused on finding properties that meet specific criteria to ensure solid returns.If you’re interested in multifamily investing and would like to explore potential partnership opportunities, feel free to reach out!

Feel free to reach out if you're interested.Looking forward to connecting!

Happy to chat, feel free to reach out! 

Please feel free to message me if you want to walk through some logistics.