You hate Midwest cash flow properties.

Texas does have specific rules regarding home equity loans and cash-out refinancing (often referred to as "Texas Equity Section 50(a)(6)"), but these don’t prohibit homeowners from using funds for investment properties.

Most Hard Money lenders may also require you to have the investment property under contract, in order for them to feel confident you won't try to sue them and you can pay them off either by selling or refinancing  the property you are using the cash out proceeds for.

I am building them especially for STRs, but they will have a cash flow as regular rentals.

They pay the sub by check , the sub deposits the check , pulls out cash and pays his guys in cash .

Meanwhile, gross rents of $1,800+ for 3-bedroom single-families is an achievable figure, so it’s possible to generate cash flow if you lever modestly.There’s a bunch of other stuff that’s worth highlighting—the economy, demographics, neighborhoods, new construction, and more.

"Cash flow," he says, "with no phone calls from tenants!"

I have been leaning toward acquiring existing assets as new-build in my area is about as expensive as existing assets AND it takes years to spin up until cash begins to flow.   

I My goal is to have a cash flow. 

Are you starting with some available capital or other investments that you can turn into cash to buy a deal?