• ARV compared to asking price - If there‘s a lot of room for appreciation I‘ll look deeper at the deal

Debt service could be a traditional 30 year mortgage at 5% with low fixed payments.

It takes longer to rent than a comparable SFH would because it doesn't have a backyard.

You can find sales comps by looking at SOLD rental comparables in your area.

You can also view under contract and sold to compare prices but be sure to check sold date if you do that to make sure they are sold this year if you use them as comparisons. 

In a traditional multifamily, everything is typically submetered , and the owner doesnt have to worry about most utilities , since the tenants are each responsible for their own.

@Matt K.You can not compare KC to CA.

Consider contacting him to see what he is up to.Bigger properties lead to:1) Less tenant risk2) Better economies of scale (less cost/unit compared to single family or small multifamily)3) Better returns (see 1 and 2)

A 1031 exchange is not right for everyone, but when comparing the numbers...Option 1: Have a larger asset base to work from and reinvest in income producing properties (via 1031 exchange), orOption 2: selling, paying taxes, and investing in the stock market (which may or may not be paying dividends).An exchange can also be thought of as an interest free loan from the government - you only pay the taxes when you do not reinvest in like-kind real estate.You do make a compassionate argument for your current tenants, and that does not go unnoticed, however as @John Warren pointed out, your return is very small. 

@Shane H.I would atleast run comp sales In the neIghborhood Id look up the tax assessment and run some analysis on its condition compared to others in the area .