Obviously being in CA, the rewards are lower cost of entry, more LL friendly jurisdiction.As for "multifamily", what size properties are you thinking?  

As a proud husband and dog owner to the charming Luka, I'm here to connect with like-minded investors, share experiences, and learn from this incredible community.I'm eager to join communities that will not only help me expand my knowledge but also hold me accountable on this exciting path.

I'll echo that most of these Midwest markets that skew toward lower purchase prices are similar.Areas can be hit-or-miss and you need to really understand the risks and potential rewards before making the plunge.

Same amount of work, same risk, 80% more reward.  

I just got Chase Business Ink. if you spend $6000 you get $900 cash back (not sure how long this offer is) and 1.5% cash rewards on purchases. 0% APR for 12 months if balance is paid off by then. 

Ocean Isle was very pretty, had lots of charm, but way overbuilt now for my liking.

Keep the beautiful images of your STR up and looking charming, set up your own free website with videos, photos of activities in the area, lists of restaurants, hiking, historic whatever.

BUT.... as I know there is a very large development of a Train Station HUB just a few blocks away, I am using my intellect and know that it will eventually increase my rents as the demand for the area increases.Eventually, 10 years from now, and that Train station hub is opened, I will reap the reward of approximately $4k per year or $383 per month increase in cash flow.You cannot do this kind of analysis with a Cash on Cash Return.You need the Internal Rate of Return.When you want to talk to the big boys, the Investment Bankers, the Commercial Lenders, your own Partners, sophisticated investors, etc., you need to understand IRR, how it works and why the one shot CoCR is just not correct.When you really understand these calculations.... the all kinds of scenarios can be modeled.When you understand all kinds of scenarios, you can begin to predict the future with accuracy as you use your God Given Intellect.

Or can the risk/reward of dedicating the cash to flips be worth the taxes of the cash out?

It's just too much risk for too little reward.