High LTV purchased at retail (off mls) has large initial negative cash flow- regulations are tenant friendly.  

Multifamily always made sense to me as initially I was very impatient and wanted to see a decent cashflow.

@Mike Terry your post is confusing!

It is confusing that bidders in Columbus, Ohio are bidding as if the first mortgage will be paid.

We would like to refinance as soon as possible after the build to recover all or most of our initial investment.

After which they invested $190k for $10800/year return or 5.6% (not even discounting for the 2.5 years to recover the initial negative equity).  

This often leads to confusion because the term "trade or business" is mentioned, leading some to mistakenly believe that the entire business can be exchanged.

So all of the gain and depreciation recapture are initially still tax deferred.However, like Joe said, the down side is later when sold  you lose the 1031 option. the client will pay tax on all gain and depreciation recaptured from before the 1031 also. 

If it were really for the motive of protecting the people, the people would still have there option and freedom to initiate the action themselves. 

Bryson: Seller Financing OfferPurchase Terms1.Purchase Price: $215,0002.Down Payment: 20% of the purchase price, equal to $43,0003.Financed Loan Amount: $172,0004.Interest Rate: 6.5% per annum (fixed)5.Initial Amortization Schedule: 12 years (144 months)6.Balloon Payment:•At the end of 24 months, the buyer will make a balloon payment for 50% of the remaining balance of the loan.