@Kyle Allder the "on paper" is what's going to come back and bite you...1) CA is not "unfriendly" it's probably the most hostile environment for landlords, SD as a city actually takes it even higher!

Regardless of what anyone states, no one really ever knows the future and this is more true in new environments. 

If you can qualify for a conventional investment property loan that would make the most sense given this rate environment.

This answer would be entirely up to your situation and what kind of environment you want to be around.

If you are considering them in this market environment, they must have some uniqueness that is worth considering.The asset and market are important but the operator and how they manage the project are critical.

My thoughts were that I needed a structured environment and a piece of paper to let me know that I had acquired a skillset.

I worked in office environments I kind of liked it frankly..  

The next one is Miami July 24th, check out the details at www.mfinvestornetwork.comThe focus is lots of great panels, content, and speakers, with the goal of creating an environment for people to network and learn!

What happens when Larry parks on Sally's side of the drive way or one tenant blares music while the other likes a more quiet environment?

Be mindful the area and environment attracts similar tenants.