We have created work instructions for every step of the process so we can maintain consistency in how we evaluate properties, communicate with tenants, market our properties, handle rent increases, manage property turnover, etc.....

We offered 407 and asked for closing costs.

My guess solely looking at your numbers is that it's an older/distressed property which means you have to account for more costs in capex. 2nd thought being it's not in the best of neighborhood then you'd have to take into consideration lower quality tenants/ neighbors and maybe increase expected vacancy and late payments.

I have gotten 2 this year so far on the market that pencil for us at roughly 50%+ return cash on cash after lending and holding costs

The catch was that it would cost me $7k.

Multifamily properties provide higher rental income and lower vacancy risk, but they require higher upfront costs and more management.

It's the cash you put in that's your cost for the property. 

My experience with the smaller multi-family units has been that more occupants = more wear and tear on your property so the turnover costs are often higher than SFH.

For the "why" regarding condos...high HOA fees (like 1000/mo...something like 400-500 is now "very low"), high insurance costs, overbuilding (everyday it seems like new building is going up) and high property taxes. 

I wonder Trumps thoughts on the affect of Tariffs and the cost of materials.