Lately with interest rates being higher and inventory being lower I've found it harder to find deals with significant cash flow in an area I want to invest in.  

For example of a conventional loan cash out you can go up to 75% cash out but only 70% on 2-4 units. 

If you speak with an investor friendly lender they can give you the rough numbers on what the best percentage is to put down from a conventional lending perspective.

Not sure if you're going FHA or not but I know of a loan product called Home Simple with All Western Mortgage that allows you to make a cash offer to the seller and then refi out with a conventional loan, but my understanding is it requires 5% EMD. 

Are either of these workable ideas or should I be looking into pulling equity out of our current rental and going the conventional mortgage route or some other financing option?

Hey Sharma, if you know all the risks associated with buying RE and doing section 8 there, then by all means go for it.Lots of people are telling others to "go there" because the inventory is high and people need to get rid of it.As someone else mentioned, before you make any investments, go drive around and make a decision for yourself if you want to invest there.One last piece of advice: Don't just look at the numbers.

Based on that I'd recommend: buying an SFR with as little money down possible (3.5% FHA or low conventional) using the remainder of the money to build a JADU and an ADU (specialized ADU lender for the remaining amount needed to build the units).

Build a home and then purchase that product with a personal conventional or FHA loan? 

There are a few notable exceptions i.e. condos near the convention center, but that is the general rule in our market.

Hardy Money Refinance To Conventional How did you add value to the deal?