Generally there are three categories of multifamily investment properties – which will greatly determine your loan options.These three categories are based on the number of units at the property.2-4 Units: While these are “multifamily” properties in the sense that there are “multiple units” – you will generally have very similar options for financing to traditional residential loans on single family rentals – think the traditional 30-year fixed rate conventional option or DSCR Loans – and the coveted 20% down payment option too.

My only challenge would be the occupancy rate.

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

In the Midwest you can expect to find 2-3.5% cap rates, appreciation makes up for the rest.

So this may result in a higher interest rate. 

Knowing that market rates are in the high 6s at best, and much higher most likely, I would be looking for at least 6% interest. 

With no experience in this area I've been considering partnering with one of the following coaching/mentoring groups (Flip System or Flip Cheap Houses) does anyone have experience with these two? 

Investing OOS is neither easy nor cheap.

It amazes me on how cheap some landlords can be.

I would also look at the current interest rate and term to see if that's a lever I could use to change the cash flow situation.