Do the positives outweigh the negatives?  

I'm not banking on appreciation but want a neighborhood where value will at least hold steady, with reasonable positive cash flow. 

The rising rents will make a cash neutral property positive in a couple of years or a cash flowing property more cash flowing.   4) Historically San Diego RE has always increased over any significant duration. 

I also would like to get myself in a position in the next few years to be able to make cash offers and only use bank financing when I have to. 

If the HOA can recoup 6 months assessments due to CO super lien status at a foreclosure auction, if there are leftover proceeds they would go the 1st position and 2nd position respectively.

- How can I️ maintain the most favorable position for a property loan in the future but continue to utilize equity ?

The 1st position mortgage probably has a better rate and a longer amortization schedule I would guess. 

On the recommendation of a friend, I downloaded the Bigger Pockets podcast and was pleasantly surprised to find that the very first podcast in my list was Ep. 268 - Acquiring 20 Long Distance Rental Homes on a Military Salary with Rich Carey.

1099(like other agents in the office)  or salary?

I’m interested in generating passive income through rental properties but also interested in flipping houses from an investment position (I’m not handy at all) - perhaps down the road.