I was sent an offering memo by a broker selling a multi-family building in an area no reasonable person would even consider affordable housing material yet the marketing materials made a point of emphasis to detail how the property would satisfy the need for affordable housing.

Other KPIs and considerations you should evaluate when talking to any lender who offered private placement of loans/notes are historic default rate, how quickly they can place your funds (do you get preference over their income funds, for example), average interest rate - borrower note rate and what is passed through to you, are loans serviced by a 3rd party servicer or in house.

Quote from @Michael Lam: Hi All, I'm an out of state investor looking to start a rental portfolio in the Cleveland area for small multi families (2-8 units).

A couple tips--Always best to house hack small multis when you are moving around from base to base. 

You have every right to be outraged at the offending party and that's the tenant.Stay focused on what matters and that is getting back in business. 

You are correct; it would be awkward having two different parties staying on the property. 

The hardest part is taking that first step, and you’ve already done it—now it’s all about being a sponge and jumping in when the opportunity feels right.I am happy to answer any questions you may have.

If I were in your shoes, I’d focus on house hacking in Phoenix by exploring multi-family properties or using the BRRRR strategy with undervalued single-family homes.

My next goal is to invest in a multi family property with a partner.Welcome to BP!

I agree with the notes above but will also caution you to make sure you're very conservative in your underwriting for the multi-family properties with more square footage.