We have not disabled ours or converted to gas, but Tenant must sign a Fireplace Addendum stating if they use it, we require a higher renter's liability policy with us as additional insured, rules on wood, storage, use, safety, they pay for yearly professional cleaning each year they are there, etc.  

Rates can be very similar to those of conventional financing (Fannie/Freddie - full doc loans that you will need to prove income to get), but typically a little higher than conventional financing. 2nd - Networking and partnerships! 

Also be aware that cash out refinances typically have slightly higher rates than initial purchases or just rate and term refinances.

I explained to the landlord what my business plan was, and paid him a set rent amount each month (though slightly higher than market rate rent).

@Jeff Shaver You can leverage your $550K equity by selling your San Diego property through a 1031 exchange to invest in a higher-cash-flow asset, like a multifamily complex, while deferring capital gains taxes.

However, vacancy means covering 100% of the expenses.Multifamily properties almost always generate higher cash flow due to multiple income streams, which also reduces the risk of vacancies.

Perhaps your rents are just higher, but I wouldn’t suggest getting into a negatively cash flowing property especially for your first one.

The California method is you buy High and you sell HIGHER.  

Then a bank will lend on the two as if they were one and that will result in a higher lending amount.

And if you decide to own a dog that is on a list of breeds that are a higher liability, then you take that risk.Dogs that are bred to be aggressive are more likely to be aggressive.