" Whether 'tis nobler in the mind to sufferThe slings and arrows of outrageous cheap living,Or to take cashflow against a Sea of debt,And by opposing pay it off"Hello:So, what seems like a simple proposition/rule (Razler's First Theorem of Hacking):If you buy a multiunit "plex" where the apartments rent for more than your current rent, it is better to rent them all out than to house hack and live in one?  

Issue is, with proposition 13 and the step up function for cost basis, and makes holding on and gifting the property.

That puts mortgage plus expenses right around $1300 with a break even proposition at best.I want my REI to snowball - and to me that means getting a large enough consistent cash flowing rental portfolio to fund the initial growth so that I can keep it growing exponentially. 

@Louis Lafata Rents for 3 unit multifamily's in the Bronx will not be in the $3,000 range so you need to adjust your proposition right away.

That is a dangerous proposition though, and I urge you to take the up most caution dealing with private lenders, research and double check everyone. 

Getting in a bidding war based on emotional desire is a losing proposition.

Is it ever propositioned as a way for them to get full asking price (just not immediately)?

Sellers and brokers don't want to waste time with buyers with no money or longshot propositions. 

Does the potential of the Keystone pipeline proposition have any effect?

@Lou R.There are many possible reasons:NOI numbers in the pro forma are likely rosy ... a thorough analysis could tell a quite different story;There may be other liens or defects in title on the property;The building is facing functional obsolescence or is carrying too much deferred maintenance;There is a forthcoming change in the local economy (major employer downsizing/leaving) or neighbourhood (redevelopment, highway or manufacturing being built close-by);The list goes on, but it always comes down to a lack of value in the proposition: either there is a significant problem with the business or the asset which makes the acquisition costs unreasonable.Now, sometimes this can be a good thing - if you are certain you have identified the issue(s) and know you can effective remedy them at a cost which the business could afford, you may have yourself a deal.