Is there a reason why you wont use the proceeds from your primary residence refi as your down payment for the second rental? 

I feel kind of stuck which seems ridiculous because I could easily afford a good down payment on a 110-150 K home.  

If the acquisition costs are higher, it will lower your COC.Remember, you can make just about anything "Cashflow", if you put enough money down and reduce your payment, but you reach a point where the return doesn't make sense.  

You can get very reliable and accurate contact info for principals using LexisNexis or TLO. 

I make a decent salary for the Bay area, have a good amount of savings and don't have many expenses outside of rent and student loan payment. 

Getting someone else to give you there house so you can profit from it is a difficult task, but a couple points you can make to sellers, depending on their situation, to help them see your point of view and want to do the deal are:- Earn Hassle Free Profits- Get Multiple Pay Days- Sell your house with No Commissions- Rent your house Without being a LandlordThis all stems from the strategy of the Seller receiving an upfront Option Payment, Monthly Rent Payments to cover their PITI, and Profits when the property Sells.  

The individual has a large down payment, 15k+.

I'm okay with it not being positive cashflow immediately but, I am also trying to keep my monthly payments down as much as possible.The main reason I'm moving to NJ is because finding multi family units there is actually affordable to me, rather than NY which is out of reach for me at the moment.

I know there are ways without having to put a lot of money on a down payment but my credit isn't where I want it to be and I'm barely getting by on my job.

Would a private money source fund a down payment on a buy and hold property?