It’s hit and miss, really need to deeply understand what they offer, if they will work for you or against you, whether they sign the lease or you (I prefer me, to reduce that lock jn). 

Then ask them what your options are to reduce payments in the future.

Focus on optimizing the current fourplexes (improving rents, reducing expenses).

To intentionally reduce the leverage more than required is a foreign concept to me especially in the San Diego market.  

Add to that the fact that private financing typically involves way less bureaucracy, with reduced paperwork and fewer hoops to jump through.

Freddie has similar intricacies, but also does not require a two year history of receipt; https://guide.freddiemac.com/app/guide/section/5306.4If you can use the rental income to drive the DTI down so that you can reduce the down payment similar to that of the FHA product, the benefits of the conventional option will outweigh the FHA option, as I'm assuming you have a strong FICO based on rate quoted with no points.  

SO many more options and the reduced responsibilites and work loads are under valued until you deal with them.. lol Also when you factor in management fees it can be quite comparable in net proceeds, without the wear and tear on the property and furnishings. 

They realize the due on sale clause could get exercised and believe the risk is justified by the reduced rate.

:@Joshua SmithWay to go in reducing the principal balance of your primary residence.

Ok, if it's still sounding do-able, the next issue is that section 179 can't be used to create a business loss, so it would only reduce your taxes for the year if your rentals are operating as a taxable gain (but rentals are often at a tax loss thanks to depreciation).