It was initially purchased by another investor and eventually foreclosed on.

I house hack here locally as well and recently sold off all my Midwest cash-flowing properties for a multifamily property here that is initially cash flow negative. 

We have an initial investment of $100,000 to $200,000 to get started.

@Rubin Thomas, My initial thought is that you cannot do a 515.5.

Next should come distributions until your initial capital is paid back + that 8-12% return. 

I could also counter it since it's his initial number, though I haven't done that yet. 

Eventually, you might hit that number, especially with a lot of units in an area with really low vacancies and you're a marketing guru who can keep your vacancy rate below 3% (almost no one is), but initially, I'd expect it to be quite a bit higher, so it'll take a while before things are in the black.I think the standard number is 10% for vacancies alone and 5% for maintenance if you do your own PM, and an extra 3% if you don't. 

To earn that hands-on learning offer to do some of the work that would be more tedious to that investor but can also help you learn in the process, such as drafting an offer letter, initial cleaning of the property, etc.When it comes time that you'll have the cash and debt (and credit rating) position for your own first investment, you'll also have a solid foundation of learning. 

This means that even with the rapid price increase, you will still receive a good initial return and expect your return to growing as rents increase.I hope the above helps.

As you likely know, the attached analysis does not account for financing costs, but initial or ongoing.