Instead of looking for multifamily specifically I am toying with the idea of purchasing a single family and then converting it to multifamily. 

Recently purchased a duplex that has separate gas/electric meters for each unit, but only a single water meter serving both units. 

Brand new to REI and in the process of just acquiring knowledge before diving in anywhere.Since I live in the SF Bay market craziness, I'm looking into opportunities out of the area.I know Austin has been a hot market recently, and as such may not have much available (in the cash flow sense), but I'll be visiting there next week and curious if it's worth reaching out to a realtor there to take a look around.I figure when I'm ready, I'll probably look to buy-and-hold a single family or multi family that starts with cash flow.  

I'm looking to redo a kitchen in a single family home in Portsmouth.

We could build single family up to a six unit.  

Here's the situation:  I've got a single story SFH in southern AZ. 

Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs; Making insurance available for both mortgages and home rehabilitation – HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage.

I have searched for over a year for single family or multi-family properties.  

The reinvestment requirements of the 1031 exchange are still in force - you must purchase at least as much as you sell (that is the 85K) and you must use all of the proceeds in the purchase (that is the 85K of cash proceeds).So you will purchase the property from the intermediary using $85K of exchange proceeds and then either bringing a new loan for the remainder, assuming the balance of the loan currently on it (from the family member), or simply bringing cash of your own to the closing.Your intermediary will sell the property to you (or hopefully if they're thinking about it they will assign you the membership interest in the single member LLC so  you avoid a second closing and transfer tax and you get a free LLC out of the deal) and pay off the mortgage they had to make to the family member.You cannot accept cash from the closing of your sale without incurring a tax event.

Your income has to cover that, plus any maintenance to the machines, as well as your time to collect the money.For a single pair of machines, a speedqueen could cost $1000 per unit or $2000.