Multi family or Single Family assets?

[Duriel Taylor]

Good day biggerpocket(ERS), 

I need as much feedback as possible. I am a cash flow driven investor. I have much experience in real estate but I never think one could be beyond obtaining more knowledge. I am currently seeking to buy assets out of state; I am located in South Florida, not favorable to cash flow investors right now. Currently my dilemma is either buy MF(s) or SFH(s) or a mixture of the two. I have ideniftied assets in markets such as Detroit, Ga, Indianapolis, Ohio, and New Jersey. These markets are yielding double digit caps. Here is my full plan; I have a full time job no major debt, great credit score, but no assets to collateralize against. I have made contact with several local credit unions; with my score and income (without a hard credit pull) I could obtain 16k per credit union totaling 80k (among 5 credit unions, unsecure personal LOC). Per calculations, I would have to pay 11.3% interest over 5 yrs, thus making my monthly payments $1750 (each lender at $350/m over 5 yrs). Thus, making my annual payments $21k. My plan is to minus the $21k from the approved amount of $80k giving me $59k for down payment assistance of either several MF(s) and or SFR(s). This will make my buying power $295k (20% of the $59k, a portfolio lender will require) ; the markets I mentioned above, my per unit amount could be $30k-$40k, on the worst case. Essentially,I could get 7 units; assuming they average $500-$700 per unit as NET/ m being $3500, NOI being $42k yr 1; Then year 2-5 my NOI will be 21k (the loan payments being $21k annually). I have calculated my expenses at 50% of gross; including PM, mortgage payments, insurance, water, capx, vacancy, while excluding the loan payments of year 2-5.

My goal is to buy assets that will generate enough cash flow that I can get my down payment money back with 12 months to 18 months, cover debt service and payback the loan(s) I mentioned in the allotted time given by the lenders; up to 5 years.

My two questions are; 

1. Should I take the loan(s) out for the down payment assistance and add up the monthly payments to cover the first year in an effort to relieve my personal debt ratio?

2. In an effort to make a profit and cover all my debit service (mortgages, PM, expenses, loans, 50% of gross income); what is best to acquire; MF(s) or SFH(s)?

Will this strategy work or will it need some modifications or will it not work no matter work?

I thank you all in advance for the feedback and your time.