I think it maybe difficult to find a contractor with financing especially in our area. 

I may be wrong, but determing the value of an asset based on comparable recent sales would give a comparable cap rate, but couldn't the value of a multifamily asset be altered through increasing NOI?

I've had rental properties in the past and rely on cap rates to typically understand what I will make.

You have to stay in your FHA probably for about a year, I don't know much about your market but if you went with conventional financing (typically 20%) it may be difficult to find homes in the $50,000 price range. 

I'm looking to achieve a cap rate of 8 or better with cash on cash returns of at least 12%."

Ideally I'd like to do it in my own area, but the prices and cap rates warrant me looking in other cities/states where my ROI and Cap rates will be better.  

Thanks Dustin - I also have my main house paid in full, so I could pull cash out to buy more rentals.However, I'm not seeing good CAP rates in multi or single family properties in Phoenix right now (low supply and rents not keeping up with prices).  

Umbrellas are available from nearly every insurance agency and are extremely common for investors.On the commercial side, refinancing is more difficult and costly so the BRRR really works best with residential loans.

I believe it would be quite difficult to find quality tenants w/ great income. 

Man this is a complicated question lol, Dodd-Frank has restricted overall loan making by banks making it much more difficult for smaller businesses and new investors to secure favorably priced loans.