It may be sufficient for small positive in class b (probably not - likely still negative cash fliw) and would be cash positive in class A.And 1% ratio is still a near unicorn find in San Diego.  

Ultimately you should go with whatever helps you sleep at night, but......

This agreement with your general contractor acts as a roadmap, with clear expectations and protection for all parties involved.One frequent mistake is the failure to include sufficient detail or being too vague.

However, in my market house values were outpacing my ability to save sufficient funds. 

https://fox59.com/news/officials-confirm-two-dead-in-tenness...This is a state fire code on sleeping more than 12.

Austin is a sleeping giant right now!

In my opinion (I'm definitely bias now, but invested here long before becoming an agent) people are still sleeping on the area with the proximity to Northern CA. 

Our rent-by-the room residents appreciate a lockable bedroom door, a private bathroom, sufficient on-site parking, a large refrigerator and a large washer and dryer (in order of most to least important).

There is nothing like being able to sleep at night knowing I have title to my houses that I buy with cash or loans and no one can take them from me on a whelm.

This will help you gauge whether the rental income will sufficiently cover your mortgage and expenses.Financing Options: With your plan to put 5% down on the single-family home, make sure you understand how the financing works for the construction part.