I think my main point, which you’re experience lends support to, is that while there are below market deals out there, it requires a continual effort of being “in the market” and looking at 100s of deals to negotiate the rare below market purchase.  

You can give notice to one of the tenants, then move in and rent out rooms to further cut your living expenses.Yes, something I've considered but does require me to move from CA to TN, so big life change. 

Mind you, I had completed appraisals, credit pulls, and all other tasks that they required.

You can refinance it into a conventional loan and that helps avoid the higher down payment.FHA also offers more wiggle room when it comes to DTI debt to income ratios and reserves requirements. 

You are required to disclose that debt, and it will be a fairly easy catch for an underwriter, even if it's not on your credit report. 

Richard,I would think the hurdle of selling all 9 lots at the same time and getting through due diligence in time to satisfy the 1031 requirements, might be a big goal.

@Mark Thiel This is not legal advice but I think most LLCs are overrated unless you are required to have them for lending like with many DSCR loans.

Anything 2-4 units will require 25% down. 

Many cities now considering allowing ADUs have off street parking requirements for example. 

As per the HSTPA, any changes to a tenant's lease whom have been in place for over 2 years requires a minimum of 90 days notice, regardless of what the lease (or lack thereof) says.