It merely means you will likely have a difficult time refinancing the property to a traditional lending source.

It seems like the best fit for your situation—less time commitment, steady growth, and manageable risk.

Will send!  

However, the depreciation claimed while the property was a rental must be accounted for upon the future sale of the personal residence, which could increase your capital gains tax liability.The adjusted basis of the property (original cost minus depreciation) will be used to calculate gains or losses at the time of sale.

On the former front, the consumer will eat it.

In the next 4 years my income will drastically increase, but I don’t want to wait 4 years to buy another property that will be an investment.

If it is a contractor that is more organized they will likely do this already, if they are shooting from the hip "based on experience" they will likely just give you a total $ value. 

And they will get their payment from the buyer.  

A property is worth what a willing seller will take from a willing buyer.Is it possible to buy a property in San Diego low enough to get 1% from it, yes.

You are not going to buy land and put in a mobile home and the lender in 6 months will consider it a single family home.