I assume you are doing a 30 year fixed 25% down conventional loan. 

If you house hacked and lived in one side and rented the other after 2-3 years if you paid down some more of the equity you would have a better chance of then getting conventional financing and buy out the CFD.

I am not eligible for a conventional loan as I am working for a start-up company and will not be approved for a mortgage.My thinking is to seek owner financing,negotiate mortgage directly with owner, and put up to 50k down for first property.Am I going in the right direction seeking financing directly with owner or do I have any other options in my current position?

Now that I know this, my strategy moving forward has adjusted drastically.From what I understand this rule is enforced on conventional loans depending on the bank and LTV. 

Eventually I want to put all properties in a business name but I’m worried going to get a loan, whether or not hard money or conventional, that my first attempt will be more difficult if it’s my business’s first attempt at getting a loan.

Depending on the type of inventory you're looking for the San Gabriel Valley can be a good option, there are quite a few properties that have 2 or 3 SFRs on a single lot. 

@Ted DeKowzanWith the strength of the current market and lack of inventory, a portfolio sale could make a lot of sense and would likely get very near market value (if not at full market value).

I refinanced the FHA loan into a conventional loan to drop the PMI a couple years ago.

The property values range between $250k-$320k.Most of our tenants in the LTO program are families that were hit by the recession and haven't bounced back financially in terms of qualifying for a non-conventional loan.  

The risk though is that influx of inventory could decrease demand in the area if there is no influx of people wanting to live there.Neighborhood wise, I think it could help bring money into the city with all the retail space but as far as population makeup I think that's definitely a preference.