Started calling a lot of real estate investment companies in Chicago and Las Vegas and came to find a lot of them are only buying MFR that are $1 to $5 million or $10 million plus. 

To qualify the irr you achieved, this was not so easy in 2009-2011:I remember in 2009-2011, we were all reading headlines about high unemployment and vacancy rates in Phoenix and Las Vegas. 

Never heard of them but they have a office in Vegas

I can add to Jds commentsthere could have been IRS judgments or other liens behind the bank loan and the bank was forced to foreclose them out.lender by law is not allowed to set their opening bid ABOVE what they are owed.. that being principal back interest (default interest if any) late fees  legal fees publication etc etc>now many times they will do whats called a drop bid.. and open the bid far under what they are owed. this happened routinely in vegas and Phx  last decade... as homes were so far under water the banks just wanted them sold.Now if a bid at foreclosure sale goes above the amount owed.. then the overages go to the next creditor on title or if no creditors it goes to the Owner of the property that just lost it..

That is the issue here....I learned this through watching my friends who bought in Vegas.....Oh boy, so hard to find a tenant there as the whole town was bought up by investors...

@James Masotti  Cirrus SR -22  NA   ( Normally Aspirated)pleasure and business.. being isolated in the northwest its a great time machineI can be in the SF bay area in 2.45 hoursSalt lake city area 3 hours.La and Vegas 5 hours.Montana in 2 hoursbritish Columbia 2 to 3 hours depending on where I am going.Endurance is regulated by Bladder..

For comparision, you can easily get a brand new 2bd 2ba for about 1/3 of that price in Las Vegas.

I have been reading about the rental market shifting to "Secondary Markets" such as Atlanta, Phoenix, Las Vegas. 

Because I don't play in the MF sand box I am not quite sure what vacancy rate will cause a 75% leveraged MF to become negative cash flow.. but that was the other issue we saw.. vacancy rates in the 30 to 40% range in Vegas and PHX sunk many a Multi in those markets.. after all all those great MF deals in 09 to 2012 were someone's loss... vacancy ,  lack of ability to refinance and piss poor management.  

If so, investing for appreciation driven by other factors would be in the same category as going to the Casino.