I think after reading everything I came to the conclusion that I must first build the process, next get the right people, finally unveil the finished product.

If so, then wouldn't the logical conclusion be that it is just a business transaction since there is no opportunity for a zone of re-negotiation?

But reading from BP, my conclusion has been the only way for a C MFH to work is when you can buy it for almost no money at all.....

The flaw of your conclusion is rooted in the different stratum the FSBOs operate The paragraph above specifically mentioned it (surprise-surprise) -  The median income of FSBOs was $84,000 and for those who sold through an agent was $105,600.

My conclusion is that it may not be a great investment, but nonetheless still an investment.

Without actual real numbers, saying the returns will drop is drawing a conclusion without sufficient data. 

Of course the disadvantage to investing in my college town and bmore is that it's not in my backyard, but I'll sacrifice distance for returns any day.My conclusion is that D.C. is one of the best rental markets in the country, but that you can easily see better returns elsewhere.

Then underwrite the deals yourself and see if you come to the same conclusions.

Draw your own conclusions.

I've come to the conclusion that in order to do so I can't go about purchasing property as a retail buyer, tying up all of this cash.