I wanted to exercise the option of not living in the rental, although I'm not opposed.

If the thread is about timing the market as opposed to just getting in and staying in, then that is totally personal based on time horizons etc.Being in the trenches and attempting to make a purchase now is uncomfortable at best, and I have come to grips with the fact that I will have to pay more than I "should" to get invested.

Yes, the BP community has given me a warm welcome with a plethora of valuable responses that I'm hoping I don't let go to waste :)I'm certainly not opposed to investing in a CA market, specifically the greater LA area given I've spent my whole life here, however, as you stated, the prices are a bit crazy right now, and I'm looking for greater COC returns which aren't readily attainable in most CA markets.

as opposed to flippers right who will be rehabbing the property to then sell it for a profit? 

Next, your best bet on a SFR package is with a local bank as opposed to one of the larger national ones.

Just to offer you an opposing opinion - driving down the principle and refinancing is putting a lot of your hard earned cash, that could be used for productive assets, into a bad asset.

As opposed to investing your labor to produce a return. 

I'm not opposed to the refundable fee because I believe whoever causes the damage needs to pay for it, so if it's my tenant, it should be my responsibility...

Why pay 25% down and have no roof over your head as opposed to paying 3.5% down and having a place to live? 

They can qualify you for a new mortgage using monthly bank deposits to verify your income as opposed to using your tax returns.Email me if you have anymore questions.