Deal seems to cash flow less and less the more I look into it.Rents(under market due to older but decent kitchens and bathrooms): $4,250 total.Mortgage payments including insurance and taxes (earthquake insurance): $2,800 a month.Reserves $800 a month.Water/sewer/garbage: $500 a month proforma...Law mowing: $200 a month.

This in turn will give you a big mortgage payment. 

Is the mortgage payment on your primary residence exorbitant?  

@Sam Hanaa Do a rent to own can collect a big down payment.

My monthly mortgage payment is around $1500 (15 year loan at 3.375%) including tax and insurance. 

My monthly payments are about $x. 

Would a HELOC be a good strategy to do to pay off the down payment for the second home.

Mainly if you don’t have the down payment for 20+ unit, you would syndicate a deal, but with no track record it would be hard to convince investors.

Understand that you are speaking to a Bank and they are trained to take advantage and they will making a good investment with your money with the down payment and the other fees they charge. 

I would like to use the equity from the rental and use that as a down payment and closing but will also need about $25K for rehab.