@Matthew A Rodriguez is correct that you are funding depreciating assets with appreciating ones which is a huge red flag. 

I'd imagine there are zoning issues at play here, too.

If you are having problems now this is a HUGE red flag of things to come in your future when dealing with them.Even in a slow market I would pass on anyone that does not follow my rules...

@Michael Anthony you didn't mention your family status, but if you are single, and don't have to consider school zones or what makes a significant other happy, you can do a live in flip every 2 years and take tax free profits up to 250k every time! 

Just make sure wherever you buy land for that project, you are able to get the proper zoning.

I'm new at this, but this seems like a giant red flag.  

There was a motivational speaker yelling about getting into the right mind set and stepping out of your comfort zone.

Other than actual numbers, CAP rates, and obvious market risk factors e.g. area is a war zone or the roof is covered with a tarp etc., what factors or metrics are "essential" to making a smart multi-family real estate investment decision?

Actually, there have been several red flags with this agent.

I care more about cashflow than potential appreciation, but I don't want to buy properties in a "War Zone" either.