Would this be a right way to evaluate whether the property will infact generate some +ve cash flow ?

As a investor you must recognise a rental property has two separate income generating streams.

I'm starting to generate leads, most of which are not the type of sellers I'm looking for.

So you can see that the more equity you have in a property generating it's own income stream the less cash flow the actual property produces.

Do you think i should sell and buy another house with better cash on cash return or just pay the principle and interest and make use of the cash flow generated?

There are many ways to generate leads, one of my favorites is targeting a specific area i do this buy targeting specific zip codes.

B: I don't want to tie my money up in a huge down payment just so I can live somewhere, instead I could just rent and use my saved up money to put a down payment on a place that will generate me more money instead.But there are a lot of variables, I could potentially see myself buying a cheaper distressed property to live in it while I fixed it up, then flip it or rent it out and move on to another property, but that would again only be because the ultimate end goal would be that it would generate me money over the long term, so again it would need to pencil.

However, they are talking about the rates coming down to below 10% in the next year or two.However, I did hear from one bank that they are offering to loan out 40% of the value of a property only if that property is revenue generating.

Jack Bosch also just came out with a new version of his Land Profit Generator course and I've heard good things about the Land Academy program. 

Hearing this coincided with an opportunity to gain sales experience by selling commercial fitness equipment to gyms and apartments.