In my opinion, you can't establish the basis more than what you paid for the property.

You will not get a better return with rentals, unless you are buying junk, with flipping you might but it would be a big risk and in my opinion not worth it when you have a great guaranteed return at your fingertips.A penny saved is a penny earned.

A man convinced against his will is of the same opinion still !

The opinion is my own...

Within the last 2-3 years, real estate investing has sparked a big interest in me and I know this is one of the main routes I want to pursue to make a living.

I would put it into multifamily.  10% COC is unrealistic here in Central Oregon in my opinion or at least my abilities, but I think you could by something with under performing rents and then over the coarse of a year or two raise them so you are getting 10% on your 450k,  That would be using leverage.  

My question is: an 8 unit property came up for sale and is over priced now (in my opinion).

My wife and I are looking to make our first out of state rental investment property and wanted to get opinions with using cash or leverage.

Any opinions on this ?

Just my opinion, but it will be difficult to invest here in Va Bch and Chesapeake unless you have cash and don't mind major renovations as it's a tough market with many investors competing.