Apparently they take preferred interest in your company or have you sign a UCC cash flow agreement.

>The likely rent I'd get in this area will cover half my mortgage payments at the momentI have done all of my brrrr in different market and I have the same issue that after a refi to extract the value add, my high LTV property at current rates is large cash flow negative (not as large as only covering 50% of the mortgage).  

I am definitely focused on appreciation over cash flow.

Based on what my real estate agent thinks that this quote will be, roughly, and the after repair value, it looks like I could buy this property in cash, spend a month or two fixing the damage, and then put a mortgage for roughly 1.6x what I paid for it and thus have a cash flowing property at a few hundred dollars per month and a little more money in my bank account ready for a down payment on the next deal.

You are correct that putting 3.5% down on a fourplex likely won't cash flow after one year.

Right now, you have a property with a great equity position, solid cash flow, and cheap debt (interest rate is low). 

Just make sure the other two assets can still cash flow with the debt you put on them.I have an 10 unit commercial property that is basically cash flow neutral because of large Capex expenses that come up every year.

Quote from @Dylan Webb: Hello, here's my situation:My wife and I own several properties separately.2 of the single family homes combined we have conservatively $150,000 in equity ($90,000, $60,000) I want to use one of these as collateral for a small loan of $30,000 to put down on a high cash flowing property OR have a lender finance the whole venture at a purchase price of $160,000.

Focus on buying below market value, running numbers first (cash flow, 1% rule), and choosing a landlord-friendly location with job growth.

If you're open to expanding your search, I also recommend checking Columbus OH - lots of deals that still bring positive cash flow and great appreciation potential.