as Update to this post from 6 years ago, there are heloc's on owner occupied 2-4 unit properties up to 89.90% CLTV or combined loan to values (meaning multiple loans but all together not exceeding 90% of the value).Terms typically areinterest only first 10 years and drawable from the lineyears 11-30 its Principal and interest payment Prime index/rate + margin (this portion is fixed but prime is not)underwriting is done assume prime + margin + 2% stress test for underwriting meaning if your prime + margin was 10% then your underwriting rate used to determine your maximum line you can qualify for would be 12% rate as an example based on principal and interest payment over 30 years or 360 monthsIncome is the main determinant of your qualification and fico min 680+ is just the min score to get through the "front door,"Maximum DTI or debt to income allowed is 45% DTIMaximum lines on this product go from 500-750k so you can get a decent line size that can actually buy other BRRR's or fix flips and deals.

I've had some section 8 but don't base a full on strategy around it.

Take Toronto, for instance.

I am not an attorney and don't even play one on TV, but as I understand it, as the owner of the home you can hold open houses if you want. 

Have been doing research and spending time here on BP and those seemed like the best markets in general and given our budget (we're based in CA so $50k doesn't get us anywhere here).

Based on their website the standard payment for a 3-bed is $1,423 but that seems really high to me.

For instance, an apartment complex would provide good cashflow however, it would be quite difficult to sell in a timely manner if I needed the money.

We will be sure to share the list of lenders we have as well that can help you accomplish your goals based on the lower down payment you are looking for. 

Any other possitive factors  - stable tenant base  - alarm systems  - regular checks on the property  - no pets  - Lead safe certification  - newer roof, plumbing, electric, etc..Anything to balance off the lossesBe prepared that it may end up in a non-standard (surplus lines) market for a couple of years.If you did not have flood coverage before, see if they will continue the current policy if you get Flood coverage and increase the property coverage deductible. 

Here is a map I just ranked, based on some growth factors for Multifamily.I hope this helps when you start looking around!