The other half is a mix of spec and owners buying lots to custom-build for themselves (more of the latter than the former).

You can also find commercial brokers that are in that space and build the relationship.

You will need to look at CA building code.

While the townhome is in good shape overall, it does need some mild cosmetic updates to bring it up to rental standards.My goal is to leverage this property to start building a real estate portfolio, but I’m not sure what the best first step is.

Someone in the build chain knows the guy who writes the checks.

Two, you'll have a much easier time obtaining a mortgage product if you have a track record of W2 income.In the meantime, continue implementing the strategies you mentioned: save religiously, build your credit, pay any existing debt owed, etc.

But be mindful of the debt service requirements and ensure your rental income is sufficient to cover the loan payments.It’s definitely possible to scale up with DSCR loans—many investors use them to build large rental portfolios.

Legal Implications & Ramifications : As an example; the iconic PCH homes in Malibu and many in the upper foothills might not permitted to build back, certainly not to the same extent or materials.

Insights on cap rates for apartment building in 44313? 

It gives you complete control over the property and helps you build the foundation for future growth.If you're planning to expand your portfolio, I strongly recommend partnering with a professional management company.