Your next best bet is heading north to Riverside county, which isn't necessarily all that much cheaper in some areas. 

This is probably your best bet with the banks, but requires additional thought on your part to figure out what works.

Not trying to be mean but you should have found out the regs before looking for a place not when your about to close on a property.Now I would call the county and find out what the requirements are and see if you can even make this a STR.Also 5k seems way too low to properly furnish a house.I think 20k would be more realistic even if you bargain shop.I bet I would need 30k to replace everything in my 3 bedroom STR.

Honestly, I personally don't like the idea of the hloc being the reserve as that means you are "betting your house" on the deal. 

They are usually betting on appreciation for their positive ROI.Eventually, rents increase to generate positive cashflow that adds to their ROI.

If you asked all of them, i bet none of them would say they are a big deal.Back to that post:As many know me, I come from an old-school background.  

but feel free to post more about your situation and goals if you want.so i agree with @Shiloh Lundahl that investing time in relationships might be your best bet at this time.hope this helps

I really see Columbus Ohio as an extremely safe bet for the next 10-20 years.

This area has a pretty significant housing shortage, so I bet an approach like that would be well received. 

Your best bet is to be honest because if  you are dishonest in this they will expect dishonesty elsewhere.