Long story short, I concur that you should look at other cheaper markets that do not fluctuate as greatly in appreciate/depreciation as San Diego but have good cash on cash returns for your objectives.

Depending on the county, the assessor will pick up your sale price and adjust your taxable value to 70-100% of sale price.Insurance: Have your insurance broker get you a soft quote based on your lender's insurance requirements.

Typically in expensive markets house hacking is favorable off the bat, cheaper markets you can rent and buy an investment property 

Most California investors buy in cheaper markets like Ohio so they can get cashflow

I like the new construction products they offer that seem to be in better locations with more upside vs some of the cheaper stuff in the midwest. 

Replacing an existing system should be cheaper.

This is exactly what we do, and people will accept 100% increases because it’s cheaper than anywhere else and it’s their home.

You will receive most if not all your benefit in year 1.Year 1 is where you will spend money furnishing the house and potentially taking bonus depreciation via cost segregation study.Year 2 and onwards, assuming you got a performing asset is where things will reverse tax wise and you will likely be reporting positive taxable income.

Do you have any properties with cheaper rent?

Renter finishes would be cheaper than the seller finishes.