They instead use conventional conforming loans with low down payments meant for primary residences to purchase properties ready to live in!

The instruments needed for the transaction will be state specific which means you should have someone from California chime in with resources who can provide low cost documents (as these will be boiler plate).

There are a couple opportunities thats on MLS currently, and I am crunching through my math and it seems to work out well (positive cash flow, decent cap rate).Some key assumptions I hope still holds true today:  low vacancy rate in general. ~1000-1200/month for a room in a single family house / duplex. 

Annual taxes are low.

Your primary has an incredibly low interest rate, and your rental (I hope) is getting positive CF, which means your tenant is paying it off for you. 

Case in point, years ago we used Olympic paints from Lowes, which were carried for a long time.

This gives a better snapshot of market trends than averages, which can be skewed by high or low sales.November: $484,995December: $484,500January: $491,995 How long would it take for my home to sell?

There is so much free and low-cost information out there.

My thought is to use a HELOC for the down payment on a new property (20% down), then once I acquire it, do a cash-out refinance to pay off the HELOC while keeping my original low rate intact.

Owner-Builder Construction Loan (Challenging but Possible)Some lenders offer owner-builder loans, but they usually require:✅ Strong financials (good credit, assets, low debt-to-income)✅ A solid construction plan, budget, and timeline✅ Proof of prior experience (renovations help, but formal experience is a plus)✅ A licensed contractor or project manager to sign off on the build2.