Also, I don't have cash right now as it's tied up in the original purchase, rehab and furnishing the place.To continue to move forward with my vision, what creative financing or investing options are out there?

HI Jimmy,Indeed, you can definitely  househack in a multifamily by living one unit and renting out the other vacant units.

Here are my thoughts on your question above. 

-What are the experiences of the group in negotiating with the seller/agent to bring the price down because of this fact.....Do we hope to get all the way down to ACTUAL cash flow value? 

Not sure who buys those, but you can plug in the numbers in loan calculator to see what down payment would break even. 

Here's what I’m targeting:Investment Criteria:Unemployment rates below the national average.Rent-to-price (RTP) ratio of 0.60 or higher.Median home prices below $150,000.Growing population and areas where rents are stable or increasing.Key Questions:Which markets have you found to be ideal for first-time investors?

Though we are very well established in Canada, we are looking to expand our services in the USA.

However, when you factor in the HELOC, we have a negative / break-even cash flow (HELOC payments are about 25% of the revenue from both).

We also have two newer houses that are fairly trouble free.

First, are you sure its a zoning variance you need and not merely a use permit?