While reading your post I was thinking "sell the Cali properties", but with 3-4% interest rates (and I'm assuming those are long term fixed rates) you will be best off to cash out refi (non-tax event) and use those funds to buy multifamily.

You may need to focus on long-term wealth building instead of short-term cash flow. 

The part that I am having trouble with is long term equity. 

There is no doubt that they try to take advantage if they think we are less experienced or won't argue.

We are looking to buy SFR's with a lot of rooms and later on we would buy SRO's or create SRO's. 

If not, its iffy, have seen it go both ways, but the long time that it has been verifiable (1972) speakes strongly in your favor.

We have a small mobile home park in Indiana that we are in the process of stabilizing.

We understand this can be challenging for our tenants, but we are planning for our children's future and teaching them about the REAL ESTATE benefits.Do any of you have suggestions as to how we can best approach this or can refer me to someone who can prepare a letter addressing our plans for the build?  

So, whatever it is... eat the same meal, listen to the same song, wear the same color, etc.

For a property like this, even in California, I would anticipate at least a +7% CR.Additionally, betting on appreciation is speculative and not the best approach to long-term investing.