That is because the owners typically contribute thousands of dollars worth a "sweat equity" -mostly site prep and painting.There is a shockingly high demand for short and intermediate term single rooms with bath. 

To go from a three unit, two unit, and than finally owning a single family home for myself and my family.

I do about 40 transactions a year and about 35 of them are probably with investors and most of those are probably investors buying properties like single family homes or multi-family residential in Fort Collins, Loveland, Windsor and Greeley Colorado.

There are some properties with 10 bedrooms that really cash flow, but there are downsides and risks involved with having so many bedrooms in a single family dwelling.I am actually working with a client right now to find him 2 properties by McMaster.

guys - on paper this property in MA doesn't look like it's got a good cash flow - this is only for a single year but the last 5 years have looked similar.

There is no one single way to invest in real estate and networking with many different investors may give you additional ideas for achieving your goals.

I would stick with single family homes. 

We both have experience in the single family realm having bought and sold several single family houses each on our own using conventional financing.

I want to start by flipping single family houses using hard money to generate cash for more flips and multifamily rentals, but am unsure the next step I should take.Should I start calling hard money guys in my area (Denver, Colorado) to see how much I could get, or Find a deal and then call them? 

And yes, that's another benefit of setting up the reverse correctly - The use of a single member single asset LLC allows us to transfer the membership of the LLC to the client instead of having to conduct another real estate closing.So the EAT would be an LLC that is holding the property after it's been completed and to finish your 1031 exchange you get the membership interest of the EAT that holds the property.