A HELOC can help you get the cash as well.

We've sold 65+ homes and the biggest request we get from our Buyers is help with closing costs.Most of our deals we're providing anywhere between $5K-$10K to help Buyers offset the cash requirement to purchase a home.Even in today’s "high" interest rate environment, many Buyers prioritize closing cost assistance over an interest rate buydown.

Cash flow is hard to come by and I have considered looking elsewhere in more affordable states.

The third property has a nice cash flow.I am wondering if there are steps I can take to reduce the cashflow issues of the 2 properties before obtaining another property, like pay down the mortgages or should I just save the cashflow from the third property to pay for any future expenses?

During this renovation period would you, as the lender, want an Actual Cash Value or Full Repair Cost policy in place?

What you have calculated is not cash on cash return.   

Purchase price: $160,000 Cash invested: $35,000 Another 1% single family deal in a transitional area creating long term wealth

Should I just add them to my 'Cash Buyer List' and move on?

During this renovation period would you, as the lender, want an Actual Cash Value or Replacement Cost policy in place?

A grand negative cash flow is not the issue.