Meanwhile, the 35 million Americans on welfare you reference includes retirees, disabled individuals, and caregivers—not a vast workforce waiting to be deployed."

Yes, you should educate yourself, but the vast majority of savvy investors will diversify and have solid exposure to value add MF apts in growth markets.

Others have explained that the banks are not willing to take on the default and interest rate rise risks for these kinds of loans, but they didn't mention that even for 30 year loans a vast majority are sold to (formerly quasi) government entities like Freddie and Fannie.  

I'm sure the vast majority of them lose money on deals. 

Moreover sure Bank loan is also needed because I am planning something vast something new .

I agree, but the vast majority of 401k plans don't allow direct investment into real estate.

The problem as far as I can tell is that new construction vastly outpaced rental demand. 

I have a client house hacking a 4-unit with 3 kids under the age of 5.I mean, it can be done.The vast majority of the billions of humans who ever lived spent their lives in close quarters with their kin in what we would call shacks.

They claim there are certain tax benefits to this structure as well and that this system is vastly superior to the traditional banking one. 

This is something that is unfortunately vastly misunderstood throughout the real estate investor world.