Since you said the numbers still work up to $25k in repairs, anything you can get is a bonus for you.Good luck!

Also as a bonus, it looks like I'll be able to use the appraisal from the previous lender to qualify for the loan, saving me about $600 :).

I am in the early stages of multi-family development (here in CA as well) and felt the cost far outweighed the downside of personal exposure on something larger than 4 units.

You would only lose your equity at that point, which isn’t to be taken lightly with a risk of heading towards foreclosure.Get a minimum of a $1M umbrella policy and possible more, depending on the value of your assets + exposures.

They are probably going to want to look though they could be skeptical, but that's a solid bonus for a new/newer high-ticket item that shouldn't need to be replaced for a while for an investor or buyer.

Bonus points if its in an area with an expedited permitting process and free to discretionary drawn out things like design review. 

I would probably first negotiate my commission with the seller.  3% sounds like a full service listing commission, not a limited exposure pocket listing. 

(I know their is probably not a right or wrong answer and it depends on the situation, but any help/opinions are much appreciated)Here is the pros/cons list of each that I have compiled: (feel free to check my work haha)SD House Hack Pros:- FHA low money down (not that big of a loss even if the value goes down)- can manage myself- can later refinance out of PMI once equity is built SD House Hack Cons:- rents will most likely not cover the PITI, when moving out- not living for free, still paying monthly (but at least mortgage and not rent)- California landlord laws (covid)- makes getting financing for out of state rentals harder if doneOut of State Rentals Pros:- immediate cash flow, can potentially get enough units to support mortgage in CA- market less volatile - better lawsOut of State Rentals Cons:- a lot more work, need to start a whole new businessSome bonus questions to get your brain firing:1.

quick cash turnaround - minimum exposure - scalability How did you find this deal and how did you negotiate it?

Or is this just one bank limiting their exposure while others have not restricted their lending?