Most do not close anything but create tons of paperwork for a brokerage.I am talking in generalities and not about this specific forum topic. 

Clearly not all property management is created equal. 

Overall I’m more concerned with cash flow and returns than a cap rate but I want to make sure Im creating an accurate and somewhat conservative scenario.

He probably is not aware of the full scope of work involved.

Similarly I see some CRE lenders throwing money around again topped by dried up inventory and too many new, overpriced A-class developments going up just to create the perfect storm all over again - this time in the CRE space.

William Davis I don’t see why you need your own down payment if you create equity.

(Small MF's on normal sized lots being torn down are generally replaced with townhouses that are sold off individually;  or they are building SEDU/aPodment beehives;  nobody seems to be adding or replacing 4-6 unit apartment structures with decent size units)   Also if you are looking inside seattle proper,  be aware of all the additional rental regulations in place there which I love to rant about.   

That would not only void your opportunity to actually do a 1031, it would also create an immediate taxable event.Certainly a refinance where you pull cash out is no problem. 

Or should I try to find a pool of investors large enough to get the next property and create a new LLC each time? 

I don't think it is a problem asking a real estate broker for the cap rate in an area, just be aware that they may not truly know the answer (in other words, do your own research as well).