So this is a property he couldn’t live in, it had to be an investment.

walk the streets, order coffee in the coffee shops, talk to the agents, go to the REIA meetings, call the contractors, meet with the property managers.Internet doesn't cut it.

Most lenders do not like these lower property values because they are too risky of an asset class, little return in interest and fees, and long term financing will be an issue as well.

Is that going to be an issue at closing or for title  or am I just being silly and paranoid. 

This will be subordinate to the existing FHA loan, but you’ll need to qualify based on your credit score, income, and debt-to-income ratio.Home Equity Line of Credit (HELOC): A HELOC could also be an option, offering flexibility in how you draw and repay funds, though it might come with variable interest rates.Balloon Payment Loan: This type of loan can offer lower initial payments with a large lump sum due at the end of the term.

Otherwise it would need to be an investment loan.  

Michael,I would suggest you reach out to local investors there in the SF area and ask to grab a coffee, a beer or a meal. 

Wholesaler should also be an investor and have investor's mind, seek each property as a great opportunity to close on, rehab, retail or hold and resell.

Maybe Ohio would be an area of interest for me? 

However the lack of a separate space will be an issue down the road.