My original goal before starting was chasing cash flow and not equity so I was doing the numbers in my head for like 1k a month cash flow before I got to the real numbers and saw the reality and tbh if I have to pay for PM and capex and maintenance then I can kiss my cash flow away BUT I would still be building equity should I still look at this as a good deal?

You could say they are FDIC insured to an extent but claims to be made whole on a failed bank to get reimbursed by the FEDS can take a very long time in some cases.The NNN even if return was 5% you have hopefully property appreciation value long term, tax depreciation against the asset, rental increases, etc. you do not get with the bank.So my clients unless they are buying say a 6 million and up single tenant where I can land 7 plus cap rate above the debt a little those smaller deals sub 4 million do not work unless they are paying all cash or have a tiny loan like 25% LTV so the high interest rate does not affect cash flow that much.So what if someone HAS TO buy with 1031 for large taxes. 

Our home mortgage is at 2.5%, so it would instantly cash flow if we rented it.

We have a STR that will be weekly during the summer, so that cleaning, etc., is more easily plannable for us. 

I just don't need the cash flow. 

We have 250k in equity in the home after realtor costs, is it crazy for us to sell, take the equity and move to a better cash flow market like Atlanta or Fayetteville, NC and start our rental acquisition?

I think its going to just take some time for the end buyers in the chain (the people responsible for buying the MBS through the whole process - generally banks, insurance cos, pension funds) - by nature are very conservative and slow to adopt to new things like SRO.Its a tough situation because the message a lot of times ends up being "rent it out traditionally on a single lease since thats more conservative" yet they are out of touch with investors who can only cash flow in this current environment with creative solutions such as rent by room, etc.

(Say 4 x $250k properties for every million, bringing in $1,250/mo in cash flow each.) 

Seems like if I purchase one of these, I am at risk to lose 2 cash flowing units.

I have clients who only care about cash flow, and I have others who focus on long term growth/appreciation.