They're going to quit, and their supply will be out of the picture.When things aren't going great, there are two types of investors.1) The kind that rationally examines the market and forces at play, looks at what they're doing and how it relates to that and how they can succeed among that2) The kind that irrationally blames everyone else (usually politics), throws a hissy fit on social media, and loses money to spite themselves instead of looking at things rationally. 

You are trying to rationalize the irrational.

I am currently living in Denver and the market IMHO is irrational.

Utilities costs (Gas, Electric, Water) for the past 6 monthsThis part of your motivated seller questionnaire gives you the information with which you'll be able to decide whether the property needs a short sale, whether seller financing is an option, and how to structure a deal or an offer that can work for both you and the homeowner.You'll also need this information to properly market the house to your investment property buyers.If you're a new real estate investor, I hope you arm yourself with the information on this page to work out win-win-win solutions for your sellers, your buyers and yourself.Motivated Seller Questionnaire Red FlagsThe power of the motivated seller questionnaire is that it helps guide your interview process, and gives you a framework to make the screening as conversational as possible (In other words, it's a script, without the mechanical sounding words and phrases).It helps you in the 4 following ways: Avoid Outright deception by prospective property sellersProperly screen your inbound leads for seller motivationHelps screen out irritable, irrational, potentially psychotic people you should never, ever deal withHelps you build rapport with target ideal candidatesSupplies information to help structure your dealsAvoiding Outright DeceptionI've had a property owner tell me "..All the house needs is less than $5,000 dollars in repairs, and it's ready..." on a house that clearly needed so much work ($35,000 to $40,000 dollars) that no buyer or agent had ever called him back.Better Motivated seller screeningBeing a successful real estate wholesaler is a matter of alignment.

It's my understanding that preferred, realistic numbers are usually in the high 'teens or twenties for IRR (at least in the exit year) but can anyone offer some additional insight into how they look at these kinds of multifamily deals?

I understand you argument of “I am just the messenger”, but my understanding is realtors have a responsibility beyond just being a messenger.Agents have told me as much as half their time is spent dealing with irrational buyers and sellers. 

And after they’d post some ridiculousness about how they were about to sell a billion dollar portfolio and make 30 million commission, and everyone would point out how insane and irrational they were; someone with 3 weeks real estate experience would pipe in and tell them that we were just being negative because we were jealous and wanted everyone to fail like we did LOL.

If you don’t know the truth about the market, you can make an irrational decision.

I'm sure some of these homeowners are not motivated but others are just going by a price they got from a RE agent or some irrational method.

People in that situation are in great stress and often think irrationally.