2) I am trying to minimize expenses and explore the possibility of securing a construction loan.

Screening Tenants: Implement a thorough tenant screening process to minimize potential issues.

I have a condo as a rental with minimal loan balance in San Diego. 

And HOA insurance coverage is very minimal so if something does happen, HOA likely won't be able to pay for much.  

Before I answer this question, I think it is important to make sure you know what want and can afford.For me, I wanted a property that was pretty much turn key and required minimal updates (painting or adding washer-dryer) as a buy and hold investment.

Houses are designed/built as rental hardened so minimal repair/maintencance for at least 15 years.

Lacking sufficient funds for a 20% down payment, I am exploring lenders offering 90%-100% LTC to minimize my upfront investment.

I don't minimize that, only to say that in the past people had that AND massive societal problems, war, scarcity and economic poverty.

My duplexes did not appreciate over the 7 years I owned them.I was so fixated on Cash Flow, that I missed the appreciation on the deal, and the cash flow ended up minimal due to the things I mentionedHope that helpsGino

Ultimately, separate renter's insurance provides better protection, minimizing confusion and ensuring proper coverage for unforeseen circumstances, benefiting both landlords and tenants.