(I know, nothing is certain but just hypothetically) and all cash out loans are not created equal. if you have a lot of equity you can borrow up to 60% with the lowest rate possible, which would be close to a half point lower then borrowing up to 75% loan to value. 

Schools are not great.I would not consider that area anywhere close to AT&T stadium, but maybe closer than CA. 

1) 50% rule is a well accepted generic approximation 2) hundreds of underwriting has shown it to be fairly close for my underwriting for a SFR purchase in San Diego.  

There is a $340 difference but if you had to put down a 15% down payment that means you would be putting down $30,000 more at closing which would be left in the property unless you held it long enough to do a cash out refinance ($200,000 x 15% = $30,000).

I'm in Peter's course and maybe it is different for me but I get my 10k back after doing a deal(s) worth $500k which is easy to do really.. feeling close to getting that done in the next few months.

My answer, yes I currently am buying a $165,000 property in Phoenix (not listed on the MLS) using one of my methods to find, using only $5,871 plus closing costs of my money.

If you are so close to the university and the rental is setup appropriately you should hit your target.

With 400K my initial thought is doing a BRRR/Flip that is close enough for you to be hands on.

Hello @Hudson Filippi FHA does have a One Time Close construction loan that will allow you to build a home.

The entrance near Mariposa is more subject to rockslides and gets closed more often.