Getting up and running can be difficult because, in a lot of places, no one will take the time to help you are share what they know or their stuff.

What makes it more difficult is that most of the 2-3 units that have been sold in the area have the potential of being converted into single family homes that can sell at about 1million, or can be duplexed down or up to attract a buyer looking for more luxurious units.  

I would say it needs to be higher cap rate become of that mix.As mentioned, make sure it’s allowed activity with the city.And check what work would need to be done to reinstate the bottom units back to apartments.  

Doesn’t make sense that an investor with more than 4 properties is capped out with favorable rates and terms.

The land becomes more difficult to get cash out on, probably closer to 50% of value (if there is even an appetite for the loan).

This would be about a 5.7% CAP when renting out for $1,500.https://matt.rmxequity.com/homes/832-W-Lennox-St-S...

Instead of being valued compared to comps you be valued on NOI/CaP rate for the area.

We are finding it difficult to cash flow a property with less than 50% down.

These questions should serve as a starting place to project more realistic rent growth projections, exit cap rates, and inform availability/relative tightness in credit on the refinance and the sale (AKA where most of the money is made). 

Other expenses include vacancy, maintenance, cap expense, and miscellaneous expenses.Turnkey OOS that actually provides $300 to $400 monthly cash flow after all expenses is not an easy find.