intrest free credit cards and cash How did you add value to the deal?

That will be a determining factor for where it makes sense for you to purchase.Regarding waiting - bear in mind a lot of people were predicting rates in 2024 would be in 5% range or low 6s, which didn't turn out to be the case.

If Don fails to pay, the bank will certainly go after me, it will at least ruin my credit and will likely take me to court.

And when you said the management company takes a 550 credit score , all I see in your future are evictions .   

What is your current rate and what are you being quoted?

Many community banks will give you credit for proforma rents.  

My original plan was to find a 4 plex in california buy using fha loan, move out after the first year and generate cash flow and appreciation, but after looking at properties it became clear to me that’s not possible with todays market and interest rates.

THANKS Your local credit union might be your best bet.

Offer to pay them off in 5-10 years at a higher interest rate.

The interest rate and down payment requirement are lower than if it were considered a second home or investment property.