can you clean up)2 small baths--these can often be made pretty nice for minimal expense, what kind of rehab do they need?

Let's also assume that cash flow after debt service is $75,000 (NOI less CAPEX) and debt service is $60,000 per year.

Offcourse, the "Goal" would to be able to purchase something reasonable and after living there for a year or so, leave and have it cash flow. 

Austin will be a bit challenging since the values / cash flow potentials are tough, even 2/3/4 unit properties fully leased up can be negatively cash flowing with traditional long-term tenants - you will see some duplexes like this around, but a for-sale single-unit property rented out on a long-term tenant will likely be rare since it would need a buyer comfortable with either all-cash or super super low leverage purchase or comfortable with negative cash flow

Given interest rates are high right now, many duplex properties do not cash flow, and I am under the impression that you might be able to get away with renting a SFH by the bedroom, for a lower all-in cost.Summarized:1.

If these places are generating positive cash flow, what potential red flags should an investor be on the lookout for?

Most hosts miss out on stuff like dynamic pricing (changing nightly rates to match the ebbs and flows of the market, like airlines do), or things as simple as hiring a professional photographer to capture the main highlights of your STR.

If so, you could do a cash-out refi, which would probably RAISE your payment, BUT the cash-out would give you a cushion to cope with the negative cash-flow until rates subside and you refi again or until you can get rents up more. 3.

Plus you’ll have a higher cash flow monthly.  

I decided to do a deep dive analysis on our market in particular; see how it stacks up against these; and how our own multifamily portfolio stacks up with local trends.Rochester may not be a sexy high growth market but, if you buy in the right location, have a great business plan and execute that plan, you can enjoy great cash flow and steady, double digit appreciation in your equity position!