Duplexes or small multifamily properties, even with value-add strategies, rarely match the potential of single-family homes in the right neighborhoods.In summary:Don’t be discouraged by low cap rates—they reflect market expectations of future growth.Focus on single-family homes with high equity potential in desirable areas.Avoid chasing the "economy of scale" myth with small multifamily properties—they often come with higher turnover and lower buyer appeal.Think long-term: prioritize properties that grow in value, even if cash flow is tight at first.

Owner occupied loans have allowed us to purchase properties in markets with heavy appreciation, and potential for huge rent increases.

They tell you that they "cherry pick" potential clients, but belive it or not they don't!

Also, good call on the potential rent control- I will research that a bit further. 

Depending on the loan amount for the new property, roughly a little over half of the gain could be deferred through the exchange.Without a 1031, they’ll face taxes on the entire gain, including federal capital gains tax (likely 15% based on their income), California state tax, and depreciation recapture, potentially totaling $130-150K.

I am foreseeing a bit of a push back or even turned-off potentially decent tenants by the $50/pp screening fee, mostly for a family of 4 ($200 out of pocket).I was wondering if offering a credit of either 50% or the full 100% of the screening costs from the first or second month's rent is a good idea.Thought?

My focus is on uncovering properties priced under $800K with the potential to gross six figures annually.

That being said, if it provides me a significant advantage or a starting point, I think it would be foolish not to utilize it.Therefore, given these two different perspectives/starting points, I'd love to hear any potential advice on which strategies/niches to focus on first, and for which starting point.

I decided to look into an official duplex or triplex putting 150K down that has value add with renovations and potential unit add but it wont have as much equity because it will be an on market deal. 

Knowing that you're new in the forum and to avoid a potential reaction of the style "Who's this idiot who thinks he knows my country better than me?"