I cleared $10k on my first one.We ended up clearing $30k on the second one.The last flip was very stressful for my wife and she wants to keep our finances (HELOC) out of the next one.I am going to look to find a financing partner to cover the carrying costs of the next flip.On a $400k house (average for my area), the total investment would be $85-$95k and would be paid directly to the lender and subs/suppliers, not to me.I can bring the lender, as I have a good rep with the one I use.I will do all the rest.

Lots of different options here.There is always a private money option - either a one that you find through referrals (like Roman Labos mentioned above) or you have a friend or family member that will finance the deal.

How do I find new expanding and promising areas?

How do I find new expanding and promising areas?

Finish reading that book then share your findings with them.

How do I go about finding a lender?   

You live in Sacramento, and you presumably work in Sacramento, so chances are that you have the best chance of finding an undervalued deal right here in Sacramento.

You can find more info the group studying the issue here.

I'm not sure what to do in this situation, whether to drop the deal and lose my earnest money or try to find another lender.

How did you find reliable cleaners and handyman for your area?