The local economy is not very good at the moment.

This is consistent with data from sources like Zillow, Redfin, and the local Santa Barbara Association of Realtors.However, when I go to "Pick Markets" and select Santa Barbara, the median home price listed is $620,000, which doesn’t align with what I’ve observed locally.

More broadly, would be great to connect with local experts on this forum. 

Talk to a few local banks and get preapproved - the best financing will be for properties you choose to occupy, so I'd recommend getting something with at least two units.

I suggest finding a local AirBnB investor who can guide you on the prices in your area and help you decide what kind of units are suitable for short term rentals. 

The builder suggested a local bank that they use and would like to see them succeed and referred me to the commercial lending department.

I’d love to hear some perspectives from more experienced and local investors on what you think about the numbers below:$130k for 3bd 1ba for a single family house:- Reno Budget: 42k- Projected Rent: $1400Pros:1.

I would suggest that you find some local meet-ups in your area and start attending. 

@Marc ShinI recommend finding local meetups to attend. https://www.biggerpockets.com/forums/521I have found all of my best BRRRR connections at local meetups.

There are lenders, mostly local in the Austin metro that are doing 100% financing for first time home buyers.