The only thing constant in life is change AND ultimately the only thing we control in life is our Response to what happens.  

Quote from @Lexie De Stefano: I like this train of thought and think you should aim for option 3: conventional loan + lower downpayment (perhaps even lower than 10%).

However, if you bought it and managed it as a market rate apartment, your experience would be very different.My point is, I can control how fast a unit turns simply by adjusting my asking rents.  

I would also try to minimize expenses through decreasing cleaning costs, installing smart tech like a thermostat to control utility costs, etc.5.

Was last year abnormal or you think the normMy guess is you will spend a lot more than $200k on an attorney with benefits etc. but if it cuts down in expenses it definitely is something I would consider and even if it costs a little more, having control with having someone in house does reduce unknown costs and risks. 

The regulations provide both insight and ambiguity.25% or more owner of the entity; OROne who exhibits significant control over the entity.

@Justin Goodrich I can speak for a lot of investors and say our biggest problems are out of our control. 

California is the only state that has essentially put a rent control type of restriction on home owner insurance premiums.

I don't observe too many people buying multi-family in the Bay Area with our rent control laws but there are deals here. 

well once pandora's box has been opened like this it becomes out of investors control.