Hi, looking at a 6 unit multiplex in San Jose where rent increases are capped to 5% annually. 3 units have ~$500 below market rents which makes it hard to make the properties break even (esp in the current interest rate environment) even at 5.75% CAP.  

Given the current rate environment, and hot Charlotte market, I'm trying to think outside of the box.

It really depends where you are located and your particular environment / HOA etc. 

As well as some other business ventures, I am currently unemployed, trying to get a job in a real estate type of environment so I can gain some more experience.

Very different environments and markets in the bay area, northern CA, Palm Springs/ JT, LA, Orange County, Tahoe, Big Bear/ Arrowhead, San Diego, etc. 

Super difficult to do in a high interest rate environment when you're only putting 3.5% down.

In other words, will those people lose because they (inexperienced syndicators and over-eager/impatient investors) are chasing risk in an environment that is more conducive to being risk-off?

Several of those areas will be tough to cash flow given the current rate environment, I'd recommend looking at places like Little Rock and Memphis as well.

Hard Money is a great way to start . . .but I would check with your local REIA group to see who lends through that group where you are investing - put all the hard money lenders into a controlled environment like a REIA group meeting - we usually have 5 at any given meeting and 8 on our website - they tend to start competing and their points and interest  and fees start getting smaller. 

And in this environment where supply is tight, the wholesale prices aren’t as good as they used to be.