Each strategy produces slightly different rent rates.

However, from what I’ve observed, it’s still not enough to produce meaningful cash flow.

That's not a profit producing activity for a Broker / Property Manager as 99% are tire kickers and the ones who will buy will buy without going on a date with you. 

If so, then they are not considered real property and you are dealing with the land value only.If they are stick built tiny homes on foundations, then that is something else.

Under such conditions, you want the effort and expense of the value add to produce as much added value as possible and this virtually always will occur in the high cost market. 

Conversely, the number of small-multi family properties being built is a tiny tiny fraction of the number built from the 1950s-1980s in cities like Phoenix and Mesa.

Most lenders sell their loans out.Nobody wants a loan where the asset is underwater every month.The real question is, why is a property worth over $1M only producing $4,000/mo.You should consider raising rents as this seems significantly below market.

Case Shiller indicates no US location has produced a better return than San Fran, LA, or San Diego for this century.  

@Michelle Reid Both LTR and STR strategies are viable and currently producing good results in the current market, which isn't easy to find everywhere else.

So far this has produced great results for me.