Doesn't mean you cannot do the occasional deal like this, but the margins are skinny, equity is slim and it is going to require more cash at closing table and more reserves as a result of this.

Refi then.I'm also looking forward to people running slim rentals to be pushed out by interest rates.

Very slim chance that happens with a new build so you rarely see investors buying them. 

I've been watching Loopnet and the MLS for multi-family (4 unit up to smaller apartments) and the pickings are very very slim.

Reason of recession is major factor in deciding outcome of the real estate pricing.Out of last 6 recession, real estate went down only once in 2008 and that was recession caused by real estate.This time recession possible because of hyperinflation and if we compare this to Hyperinflation of 1970 - 1980... here you can see what happen to real estate in those 10 years.RE might stabilize because of high interest rate but based on supply/demand imbalance, crash looks like slim chances...

Your chances of getting an offer accepted as first time buyer are slim, but you have to get used to the game.

If so, lately they have been pretty slim in my market too.

I would advise finding an off market property source so you can have a wider range of options and not pay a price so high for a destroyed house that your margins slim down. 

Have helped a few folks find house hacks, but mainly looking at homes with ADUs/MIL suites as like you mentioned, the multifamily scene is pretty slim here, and they tend to be in areas that I wouldn't necessarily advise living in.

The risk of monetary loss is slim.