"Value add multifamily" is a cute term, but it will be an absolute bear of a project that will evaporate cash if you don't know what you are doing...and perhaps even if you do know what you are doing.

You can find plenty that look good on a spreadsheet, but the maintenance on an older home along with the pool of tenants that you are renting to will evaporate the "cash flow" very quickly. 

Your AC goes out, boom your year of cash flow evaporates.

These problems have completely evaporated in less than 24 hours.

I am now seeing how the REI Nation process works from start to finish and as someone who also owns my own rental portfolio here in Memphis in what I consider solid neighborhoods but also used leverage to purchase, sometimes your cashflow gets evaporated due to CAPEX and there isn't always rhyme or reason to it.

At 1500F that film of water evaporates in 2 seconds. 

Oftentimes the "immediate and highest return" evaporates once you get into it and start dealing with various issues that weren't addressed upfront or due to location (harder to fix). 100% agree with you!

This includes operating your heating and air-conditioning system as appropriate to reduce humidity, using appropriate ventilation, limiting evaporation of water, promptly removing any visible mold, and immediately reporting to us any leaks or other water intrusion into your apartment or any visible mold that you cannot remove.

Then the properties did not perform the buyers were counting on a little cash flow Delta that over time evaporated they had no ability to refi they were underwater on the exit  IE sales cost and bringing loan current exceeded equity thereby needing cash to close..

If you think about the main reason WHY there is a shortage it's obvious that it is circumstantial and that reason will evaporate with changed circumstances.