His business fors check out on the Nevada Secretary of State website (all businesses operating in Nevada must register) and he appears as the primary on a number of real estate related businesses.References might be as difficult to vet as the lender.Thanks for the help so far . . . 

However, now that I have my primary residence paid down a little more I am interested in giving myself more financial freedom in the future and I am interested in buying and holding multi-family properties.

On the other hand, if the tenant does deliver the rent and we can get through the winter, then I would be in a better position from the financial and rental demand standpoints.  

If I bring the price down to $150k, The return climbs to positive 1.06% return (annual! 

I thought you'd make it to a higher position in that college??

Typically if you have a large down payment of 20-25%, you can still find properties with positive cash flow in single family and you make money on the appreciation.I bought a newer Townhouse in home town Orangeville recently which is cashflow positive with 20% dp.I agree with Luc and Ming points, you have to be able to improve the property, either improve cash flow or increase property value with reno's.I have looked at multi family and retail net properties but have not found anything too exciting yet.

If your goal is cash flow (in my opinion) you're better off trying to buy with owner financing (contract for deed - land contract, installment sale, mortgage wrap, promissory note with a first lien holder position on the trust deed for the seller (if they own it free and clear), or sub2.

As a landlord, with positive cash flow it is difficult to agree to sell the property.  

As Dave J. asked in the forum conversation about Ohio wholesaling, “What is your intent and how comfortable are you if you have to defend that position if you find the local real estate commission asking questions?”

If you cant go all cash....one way might be to take out a straight business loan to buy it, or perhaps a HELOC against your primary.