It's eating away every bit of cash flow from the property and then some.Both units currently have baseboard heating - which I've heard can be on the more expensive side of heating options - but I'm not sure if this amount is realistic for the area, or if there is a better heating option that I should look into for a reasonable cost.

I currently live in the Bay Area, but I’ve decided to start investing in the Jackson County/MO area.

Sale your current house.  

I currently own (and property manages) one investment property (2 family rental).

I'm currently working with a realtor who himself is a real estate investor.

Higher interest rates on conventional loans may result, as the government backing currently helps keep rates low.

If I invested 100K today, they are currently providing anywhere from 60 to 72% passive tax deductions due to cost segregation, depreciation, etc. 

We have purchased a property for flip that's currently under renovation.

Or turning your current residence into a rental and buying another primary and living in it until you can rent it to cash flow. 

This approach mitigates risk while leveraging your resources effectively.Looks like your household could qualify as REPS and really offset your taxes if your portfolio is optimized.