But I want to now purchase a house with the first time housing program, would I be able to?  

Albeit a part time one.

I'm looking to purchase my first property with my fiancé (both 25) with the goal being to establish our primary residence together, as well as giving me the opportunity to add equity/value via rehab before moving on a...

I’ve been working probate leads here in San Diego for some time and your words are right on point…lot of time for sometimes little to no return. 

I weigh more on making 3x rent and having great rental history of on time payments with no evictions, no lease violations or violent criminal history.

If there's enough duplexes that it's likely you find one you like in a reasonable amount of time (less than a year), then start looking at them in your preferred area.

Thank you so much for taking the time to answer :)sent you a message, would love to work with you.

If the borrower themselves need weeks / months to get plans and permits for construction, and does not provide all docs in a timely fashion, we can only go as fast as the borrower provides what we need. 2.

Each potential buyer has come to their own conclusion that it would be too much hassle and risk to manage in this fashion vs a traditional rental even though the average cap rate in our area has been half that at best.

It’s doable, just more difficult, time consuming, with a lot more “contacts” needed for each “sale”.