I know several successful investors that essentially ignore cash flow altogether, in favor of total returns.

Adverse conditions cause the capitalization rate to be adjusted higher; favorable conditions cause it to be lowered.

From what I know about them there are many more hurdles to jump through as a contractor and on the "approval" side of things, but the people who talk favorably about them usually mention that: "it's guaranteed money" for the contractor, so it tends to attract the best of the best from a quality standpoint but the work is a premium...again have never done it myself, just what I found when I was reading about them.   

Compare that to current times where I couldn’t realistically imagine less inventory, lower interest rates, or any other factor to be in the favor of strong real estate prices.

So, I asked my mortgage lender about a traditional mortgage and the terms are pretty favorable, but since I already own the house I was told I have to own the property for 6 months before we can do what is essentially a cash out refi.

As a rental you participate in debt paydown, property appreciation (CA isn't going anywhere over the longer haul . . . maybe for a minute but it seems likely that it will come roaring back), tax favor, and cashflow.TLDR:  It depends on your goals, but most people wish they would have kept more and sold less, so I'll echo them here:  keep it and rent it.

I plan to set up an LLC and and business account for the income, but I wanted to see what banks in the area are most favorable.

What could you renegotiate that is not in the lease currently or that long term could be a benefit in your favor to change now in exchange for some rent relief in the short term?

Just don't invest any money you're not willing to lose.If you can find a private lender, that'd be ideal as the terms you get are going to be a little more favorable and it still keeps your risk lower than using all of your own cash.

My previous concerns with NY real estate are largely well known already- high bid up sale prices, low CoC return, highly favorable tenant laws, etc.Now on top of the rent moratoriums from COVID, landlords also have to deal with new statewide tenant protection laws enacted toward the tail end of 2019 that provide an astronomical amount of tenant protections. https://www.rebny.com/content/rebny/en/newsroom/in-the-news/2019/Housing_Stability_Tenant_Protection_Act_2019.html/also not looking good for "mom and pop" investors: https://www.amny.com/news/rent-laws-new-york-1-32225521/Bottom line is, I'm sure there are NY residential landlords in here.