A lot of waterfront is cash/near cash.  

That’s a lot of cash.

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.

When does the cash flow start? 

They only accept cash.

This does not align with buying most buildings in cash.Once you progress in your investing efforts you may come across more UHNW individuals, family offices and institutions who would take the lower return for limiting risk (all cash deal).

Fast Turnaround: Unlike long-term rentals, you can cash out quickly and reinvest.

However, co-living allows you to acquire properties with as little as 0%-5% down, drastically reducing the amount of cash required.Instead of needing $100K+ to buy a rental, a co-living strategy lets you start with a fraction of the cost while achieving higher returns.3.

Cash flow great.  

Unless you have an immediate need for the cash I'd wait until I could pull out the extra $40k.