Create Drupal 7 Multi Site on Mac OSX 10.10
It sounds like you don't have your directories configured properly.

Assuming that you have this file structure:

/users/
    /drupal/
        /sites/
            /drupal1.localhost/
                /settings.php
            /drupal2.localhost/
                /settings.php


Note that the folders under /sites must match the http.conf server name.  (unless alias's are set up). 

With the above structure, your http.conf would look like this:

DocumentRoot "/users/drupal"

&lt;Directory "/users/drupal"&gt;
    AllowOverride All
&lt;/directory&gt;

NameVirtualHost 127.0.0.1:80

&lt;VirtualHost 127.0.0.1:80&gt;
    DocumentRoot "/users/drupal"
    ServerName drupal1.localhost
    &lt;Directory "/users/drupal"&gt;
        Require all granted
        AllowOverride All
        Order allow,deny
        Allow from all
    &lt;/Directory&gt;
&lt;/VirtualHost&gt;

&lt;VirtualHost 127.0.0.1:80&gt;
    DocumentRoot "/users/drupal"
    ServerName drupal2.localhost
    &lt;Directory "/users/drupal"&gt;
        Require all granted
        AllowOverride All
        Order allow,deny
        Allow from all
    &lt;/Directory&gt;
&lt;/VirtualHost&gt;


Note that the document root points to the base Drupal folder, not /sites.  Drupal will handle this part automatically.

Your hosts file would remain the same:

127.0.0.1     drupal1.localhost
127.0.0.1     drupal2.localhost