The intent of allowing some sophisticated investors was to allow people who fully understood the risks of what they are getting into.  

An LLC is not free.

I live in a lower-income area, so I figure that the better tenants you will get with a safe house, the ongoing safety the tenants feel, and the lowered risk of a break-in (when occupied or vacant getting ready to lease), and reduced headaches/vacancy/potential damage are worth the marginal up-front cost of having it installed.

For this being your first project and it being around two years, you want to underwrite in a way that minimizes your risk and maximizes your cash flow.Key Considerations for Underwriting This Deal1.

If you need any help on the financing, please feel free to DM me.

Is the line of credit different from refinancing the home that is free and clear? 

If you buy with 0 leverage, you are so hindering the return that I question if it would be worth the effort/risk in San Diego. 

Take a break from larger multifamily acquisitions for now, as they may not align with your current capacity or risk tolerance.Whatever you choose, know that setbacks are part of the journey, and you’ve already gained skills and insights to make smarter, more deliberate moves moving forward.

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Screen them to determine a level of risk, and then decide if and how you will mitigate the risk.In this case, the risk appears to be an eviction from five years ago.