Then apply for a FHA loan which is 3.5% down and a min score of 580 (620 for some lenders).You can also look for seller financed deals. 

Apply a time frame to it.  

Did you imply that if the property was initially my primary residence, then the 2/5 rule will apply?

If so they apply for apartment complexes 5units and up.   

I never had the opportunity to really apply myself to real estate because of the military.

I live in a different unit on the property and thus am an owner-occupant, so CA rent controls should not apply to me.The Problem:  Come September I receive rent in the previous amount, not the new amount. 

Different story, different scenario, but the same applied that I didn't have any PMI on my loan payment.

Not sure if the 4 unit max rule applies to the entire life of the loan or just at time on closing.

I would go with the Crack personally.and the 1% rule doesn't really apply to most or any markets anymore. 

The same criteria apply to the other TK's I invested with.For analysis, I recommend the BP calculators in combination with tools like Rentometer and the local data often provided by the city or county on their websites.