My offer on a REO was rejected as too low - the issue with the townhouse is listed at (1)"system did not hold pressure due to damages, unable to find source of allleaks, water heater damaged at side where TPR valve damaged" and (2) "Water Supply and Sewage system was inspected for presence of obvious visible defects.

I have buy-and-hold out-of-state, but plotting purchasing small multi in Westchester, so will definitely keep you in mind with your construction knowledge!

The pool of buyers of (old) multi-families is lower, esp. there.

I am reaching out because I am looking for further knowledge on borrowing money from private and hard money lenders so I am hoping someone can answer my questions.When it comes to private money or hard money for an apartment or commercial building, multi family or even single family, what is the process you take in acquiring the money to close a deal?

It's good risk management to have the 30-year mortgage and the flexibility in case your rents ever go down, or you have a really large capital expense (e.g. you have to replace an entire HVAC system).Lastly, seek out a portfolio lender (a.k.a. balance sheet lender).  

I'm looking to invest in multi-family but my DTI is pretty much at its limit.

I hope to start expanding to include multi family units in the new year and would be delighted to hear of any advice, meet potential investment partners and share stories with others with the same interest. 

Try Smart Property Systems.  

I'm more interested in multi-family units, however is the numbers work I would consider SFR as well.Can anyone give me insight to this neighborhood...?

That method is much more applicable to real estate that is used purely for investing - i.e. commercial or multi-unit real estate.