A mentor of mine with 400 units told me I can use a large seller credit to cover most of the down payment on a property I'm looking at.

The property had a large amount of deferred maintenance.

To buy a multifamily property without a large down payment, explore financing options like FHA loans, VA loans, and conventional loans.

As Harry came to dominate a large segment of the NYC real property market, this became a serious costly mistake for those who Harry thought had not acted ethically. 

Also, the state of formation is likely where internal disputes would be brought among LLC members, so if you and a partner and/or spouse live in CA, you probably want to arbitrate in CA if the two of you had a disagreement.

Why would you cut yourself off from a large segment of people.

Having said that, it could be a useful tool in your toolbox once the portfolio grows large enough.

Complicated rooflines, modern details that require a bunch of steel framing, excessively large great rooms, spa-like bathrooms, etc would push you into the $1,000-2,000 range.  

I connected with a real estate agent who had a large investor client who was looking to off-load some of his portfolio.

The property types I'm most interested in are: Small (2-4 plex) and Large Multifamily.