Another option is a DSCR loan where some lenders have shorter seasoning or waiting periods- I've seen some that are three months which can make a big difference for an investor getting cash out of a deal and using it on a new project.More info on DSCR loans: DSCR loans won't use your income to underwrite the loan.

If cash flow is the main goal, there are many other markets to consider before San Diego.

The stresses a house goes under are different depending on the location, weather, type of construction, and tons of other factors. 

Check out the different Forum Categories here as they can answer a lot of questions you have just reading through.

That is one of the main reasons that I’m so skeptical. 

Then look at different REI to scale to that number.  

Most do a LLC but again it can be very different - for example I have a C corporation, had a S corp, had a LLC etc. and each one for very unique and different situations. 

Being a super host and knowing how to place claims are two different things.

If you think you can find a higher quality tenant, then that is a different conversation entirely. 

Basically, the further you get away from the city the more potential for cashflow, but you're also dealing with a different tenant base that may be tougher to manage.