The employment is strong in Sacramento and Central Valley you can get for less and cash flow on your rents.

I want to find a lender that would entertain a lower down payment on a property that should cash flow very well but I want to be out of pocket as minimal as possible. 

We have a sfh (former primary residence) grossing $425/month and with over $140k equity (15 years in possession) and I am finding multi family homes in same area for slightly higher monthly cash flow with long term greater return because of having more than one property to rent.

I know the cash flow doesnt quite make sense now and the COC but we are asvised that the rental rate can potentially go up.

I need to find another vehicle to invest the monthly cash flow.

Gallinelli determined these numbers given the information in these categories.My initial investment was $323,472 (expressed as a negative).Cash Flow Year 1 = 25,619Cash Flow Year 2 = 29,686Cash Flow Year 3 = 33,876Cash Flow Year 4 = 38,191Cash Flow Year 5 = 42,636Where am I going down the wrong trail?

After the PMI drops, I'd cash flow only 140 per month (again after all expenditures).I know I can't bet on appreciation, but am I wrong in thinking it could be a good idea to hang onto this place for a bit?

You could try to get your unit rented or get another unit that has a positive cash flow that you desire. 

Just some made up numbers for an example:Original mortgage payment: $1000 monthHELOC payment: $500monthTotal:$1500Now rental #1 cash flow $400 positive per monthRental #2 cash flow $400 positive per month=$800 - $500 = $300 more in your pocket per month than before.

Having that would help in eliminating areas that don't cash flow.