Inventory continues to be the biggest factor in keeping prices high throughout San Diego county.If you are one of the many buyers on hold due to interest rates, a good alternative is asking the seller to credit you for a 3-2-1 or 2-1 rate buy down.

If your STR income doesn't cut it for DTI, look into alternative financing like portfolio or hard money loans.

If not, what alternative strategies would you recommend?

Alternatively, if you're planning on buying multifamily in a low cost of city to get the best bang for your $ - then it might make more sense to do so. 

Alternatively, there is space to add a second bedroom.

It is fairly easy to get a loan modification or other alternative to foreclosure (Assuming its Fannie/Freddie, which is still 70% of the market) these days and values are not declining so, its not like we were chasing values down like we were 08-16."

With so many “alternative” qualifying programs out there, there really has to be something other than “under 2 years employed” or “doesn’t show all his income” for the buyer not to be able to obtain institutional financing, and hence be willing to spend $250k for a $200k house. 

Alternate uses of the same money).

There are far better alternatives. 

Run your deal analyzer as if you are purchasing the house now for $230 and see if it meets your investment criteria (and also compare it to an alternative investment purchase).