After we move in 4-5 years, I would rent out both units.Pros:Potential for long-term appreciation in San Diego.Cons:The property will not cash flow enough to cover the mortgage while we are living there.After we move, it would provide very low returns and minimal cash flow.Would require a significant portion of my liquidity, making it harder to invest elsewhere and grow my rental portfolio.2.

That low rate will help maximize cash flow and long-term returns on your investment.

Transparency, I thought I would never be able to afford Alexandria either.We showed up to Old Town Alexandria and started renting. 4 months later we found an affordable house in Woodbridge we could get into for a year with low down, then rent it, in the mean time we recoup the capital from our other 2 properties to go buy again after that 12 months.

The beauty of renting by the room is the rental amount per person is very low. 

I am closing LTRs in the low 6's to mid 6's with 1yr prepayment penalties at par pricing (no points) at 75LTV on purchases right now. 

A DSCR loan (Debt Service Coverage Ratio) is another option that offers low rates, as these loans are based on the potential rental income of the property, However they are for investment properties only.

@Steven Lowe you’re putting way too much on Pong and not enough on Frogger!!

If they have low credit scores, shady history, and lots of heartbreaking stories, they don't have the money now, and they won't have the money after, and you will be sad to discover this one month down the road.

Some small local banks are offering commercial LOCs on investment properties, but the rates I've seen on these are north of 10%, have low LTVs, have to be rested once per year, have to be renewed every 2 years, and are callable.

It is generally a bad time to find a tenant (holidays coming up) but you might have some luck in that the supply of housing is probably very low in the city now.