The thing I would be worried about is that these two properties will consume your entire life, you will have to overspend on both, you will overdo it on both because of the attachment and will end up with properties that are worth way more to you (emotionally) than to the open market.Your area has starkly rising insurance costs because of fires and the property in Carlsbad being near the water now has strong flood risk so your insurance and holding costs are going to keep going up and up which may hold down the overall value.

While it can be time consuming and pricier due to the fine tooth comb the section 8 inspectors go through the home, at the end of the day you’ve put your property in impeccable state to begin with.

If things aren't looking good I'll bake in an additional 10% to protect myself.6.

I would also charge a lot more than I would for a residential rental.Honestly, I wouldn't recommend it unless you've really studied it and understand how to protect yourself and earn fair compensation.

99.9% of lenders will not take a consumer ordered appraisal. 

Folks use an LLC for anonymity and liability protection.

Title insurance protects the lenders in case issues with ownership arise after the sale.Underwriting fee: This is for processing the cost of verifying the borrower’s credit history, income, and other financial information.Discount points: Many investors pay more money upfront to buy discount points and reduce the mortgage interest rate.

Just would like to know would this be smart on my behalf(liability)protection wise? 

., Canada, and Mexico due to economic pressures on lower- and middle-income consumers.

The former provides a much lower return on equity but is simpler and easy to achieve over the long run.The latter is much more time consuming and risky, but provides high returns and a lot of tax advantages.