I suspect REI are likely to find that my proposed method of starting small but gradually increasing each month in a way that rent increases more than cover it will be far more manageable. 

If so, the seller financing method such as what Account Closed brings up a good idea about 1031s.There are other, more unique and creative solutions.

There are no secrets in real estate, we've been in this basic structure over a hundred years and there is nothing that is really new,  just a new twist to old methods, it's been done before.

I am young and don't have a lot to invest so I am particularly interested in methods for investing with low start up cash.

You will not find market cap rates and it is a less accurate method anyway. 

Is there a preferred method?  

One of the easiest (but more expensive) methods of getting started is with hard money lenders.  

I am sure most of you are aware of the method I am referring to.

This is your market for lease option sellers and there are thousands of them in every city in the US, you just have to know how to market for them.It would seem to me that the benefits of getting paid 3 times (option deposit, monthly cashflow and back end payout)  on a house through sandwich lease optioning is much better than just getting paid just monthly cash flow by using the method you are describing.

My main concern is the cash flow for the first scenario, but the BRRRR equity looks great.