Yes, they can be had cheap, but cash flowing them is the challenge:  HOA fees and special assessments are only a few of the costs…let alone the PITI, repairs, vacancies, and less than predictable appreciation.  

I think you may be looking at the property the way a realtor/buyer would ("cul-de-sac," "desirable location"), but renters may not value those same things.In contrast, I'm about to close on my first deal and should be able to make the same return you are predicting on an investment of just $27,500.

If you are located in a stable market with no population loss predicted in the next decade (us census has very detailed and very educated forecasting models for most zip codes)then each month your tenant pays down your mortgage will count as money in your pocket.

Many knowledgeable people predict a good market for this area for the next 5-7 years.

Does anyone predict when the multi famialy market will go down to when prices are low like a couple yaers ago?

I can't predict too far into the future to say which one will appreciate more from here but I can't find fault in the points you raised.

The system is broken, let's progress towards fixing it.The predictable opposition to the Bill is from the Community Association Institute (CAI) and HOA trial lawyers.

Having said that though, Clear Capital predicts that the Midwest will be the fastest appreciating region of the U.S. this year.

Don't know about your areas @Ben Leybovich but here in Portland, Oregon there was an article talking about the tipping point where buying is cheaper than renting and predictions that rents will increase for the next 2 years, and that renting will become less affordable, forcing renters who can, to buy.I remember when renters started buying and money was easy. 

Well we have a $1.5k/year line item in our budget to pay for repairs, which may over several years absorb the needed Capex, but that is of course a prediction about the future.