I guess my question is this: is the very low cash flow (due to my low down-payment and high interest) going to improve?

My known options are hard money or private lending and then maybe doing a cash out refi, but rates would be high on both ends and will really cut into my cash flow. 

@Tayvion Payton here's some useful info:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I think the key to getting a good start in REI is finding a way to have a high 9 to 5 income and using a good portion of it  invest in your real estate endeavors. 

high cash flowing short term rental How did you find this deal and how did you negotiate it?

high prices have made properties expensive and high rates have made money expensive. 

I'd highly recommend house hacking in your local market since you're in one of the highest cost of living areas in the US, especially if you're renting currently and planning on staying in the area for 5-10 years.It sounds sexy to go out and invest out of state for your first property.

The risk of property damage or a lawsuit from a dog bite is too high. 

For active investments I advocate considering how you can diversify WITHOUT ceding your competitive advantage nor the superior profitability of the niche your in.As an example my business is running an investment fund and syndication high interest commercial mortgage loans secured by income producing real estate. 

They realize the due on sale clause could get exercised and believe the risk is justified by the reduced rate.