With it being a 5-plex you cannot qualify for an FHA loan or any other type of loan that would allow you to decrease your down payment.To answer your initial question, no it is not a bad time to purchase small multi family units.  

The appraiser said that it could be responsible for some of the decrease.

That would definitely decrease the cash bleeding, but it seems like I will not be able to achieve positive cash flow if I refi remaining balance to 30 years under current market climate, unless the rent goes back up to $2000.

It could  be stressful doing both and managing a family but I know its what needs to be done for something to change.

I keep seeing my savings decreasing while paying my mortgage and bills, but have no real cash flow right now. 

@Megan Winterberg if I were to offer a suggestion it would be 1) identify your desired market (steady population growth, job growth, rent growth, decrease in crime, household income and value) www.city-data.com can provide a lot of useful metrics.2) identify your submarket using same approach as above.

For example, I find that a lot of properties have been listed for one price in 2017 and then relisted multiple times with decreasing asking prices to a point where they are now sometimes 30% below the last purchase price.

Next, stress test your calculations with lower ARV and lower rents. 

Usually the seller is on the verge of pre-foreclosure, moving out of State or possibly a stressed out investor and want out.

I don't think we are going to see a drastic decrease in prices like the 08' recession.