Cash flow is a risk-adjusted function of your equity.

You are right in that the cap rate gives you a theoretical return on an all-cash purchase after all ordinary expenses are paid and this does not include the debt service. 

If you're newer to BRRRR or managing from out of state, it might make more sense to start with solid value-add rentals—fixing and renting in markets where you can still hit the 1% rule and cash flow from day one.

Some would argue that low cash flow is acceptable.  

But bringing up Central Florida shows cash flowat the regular/default down payment amounts.

Typically, you have to put in some sweat equity in order to see any cash flow. 

DM me and I’ll point you in the right direction with some high-cash-flow markets and local contacts to get you started.Good luck!

@Todd SadowskiThe Midwest is a great place to start your search if you are looking for cash-flowing properties. 

The returns may be more modest, but I like the idea of consistent, predictable cash flow and the ability to scale quickly with less capital.I do have some assets available to invest, and ideally, I’d like to use that capital to build momentum—whether through a flip or cash-flowing STRs.I’m hoping to hear from investors who’ve stood at the same fork in the road.

I have a cash flowing short term rental property & I'm ready to move on to multifamily investing.