I have not received any return on my money. 

Absent them, risk is controllable over time.

But don't risk your entire nest egg. 

Risk of being the 1, right?

Obviously the numbers need to make sense but I am all in favor of trying to purchase properties in more A class area with the loan since there will only be very few times you can buy multifamily in these neighborhoods with as little money out of pocket.

Same day auctions of course are not going to be possible for a lender to lend on the initial purchase but you can often get the same hard money purchase terms right after closing if you're able to buy in cash

The Homeowners Insurance will include Builder's Risk.

I currently broker LIHTC multi-family for a large firm coast to coast and am also interested in MF in the Arizona submarkets as well, and will eventually invest on that scale - I just figure breaking into the state through SFH flips may be a more risk adverse way to understand the pros and cons to phoenix submarkets.

This is the “over night” success that’s taken 20 years.2 - Superior uncommon knowledge, combined with experience and capital and a willingness to take a risk (speculate).  

Risk Management:Every investment has risks, and real estate is no different.