Very cool, I'm new to the game as well and from So Cal , I own one duplex in So Cal but am debating on trying to invest further here or venture out of state .

Use vendor financing, subject to, contract for deed, joint ventures.

If you don't have experience in development, I would suggest finding someone experienced this is a highly risky venture.

I would venture to guess most people at open houses are not actual buyers.

You will hear the term: JV which means Joint Venture and that is usually a great recipe 

And Honestly no one said that This Real Estate Game was Easy, i had my fair share of struggles, still struggling a bit now but im not giving up, you shouldn't either, just know you aren't the 1st nor will be the last that starts to struggle in their RE Venture.

When possible I even propose to do  joint ventures with PM's.

Also, I have not yet ventured into multifamily however I have my suggestion would be find a good property manager as many of them hold brokers licenses and will know when potential properties will come up on the market. 

Hope your venture goes smoothly!

Yes, determining demand would be the first step in any business venture.