Its big tax revenue for governments.The risks?

Its zoned for 16 units .What are the risks in a previous fire home?

Endless financials, tax returns, and questions from guys sitting behind a desk that have never ran a business, risked capital, sold a product.

I know the risk associated with these properties are high, and it would take a lot work to make the property profitable. 

All depends on risk tolerance. 

There is a risk the agent will "tickle your ears" with good news just to earn compensation from the purchase or management.

I hope a fair system is implemented that rewards contribution instead of arbitrary unwritten practices that are being carried out now. 

., to minimize risk.

interest rate is Half of what you should get for second position.. in my mind. why would you do all this and risk this for 1,600  dollars total income..

If you did start out single family and get some equity in a home or two over a couple years you could then do a 1031 exchange and hop into a multi family with less risk due to your equity going into the deal.