My original plan was to find a 4 plex in california buy using fha loan, move out after the first year and generate cash flow and appreciation, but after looking at properties it became clear to me that’s not possible with todays market and interest rates.

Tax and insurance premium are about $5k, utility (including internet) is $9k, cleaning fee is about $7k (based on 40 stays), maintenance $2k,  wear and tear items $3k, and set aside $5k for big ticket items. 

I feel sorry for the people losing everything in the fires , insurance will go up .But I wish I was the guy  driving this bulldozer ;t=162s

I’d pay my 0% interest for a year credit card loans and 401k loans off asap then repeat.

At first blush it looks like you're finance at $500k, so getting a loan for $375k.

But IRS allows an IRA to be invested in anything except life insurance and collectibles.

If you are looking to buy in PA, its possible you can qualify for PHA KFIT program that gives you a 5% closing cost forgivable loan.

The cause of the 2008-2010 Great Recession was bad real estate loans - if you could fog  a mirror, you could get a mortgage!

If you have insurance, generally, there is mold remediation coverage. 

I see little benefit in the FHA as an option as long as the 5% conventional loans are available now.