At the moments, I'm looking at 2 properties both in California:-  First one is a beautiful, bigger home, completely high-end upgraded, in a higher value area with a good school district, and of course it comes with a higher cost to buy, rent can only cover the monthly expenses (mortgage, insurance, tax, etc), this one is expected to have higher appreciations in the long term.- Second one is a decent remodeled home, smaller, in a lower value area, I can get it without financing (pay cash), so it will cash flow (about $2200/moth after all expenses such as tax and insurance), it also has a potential for an ADU, but future appreciation is not as great as the first property due to location.

I'd prefer to take a downpayment and have them get a lender mortgage. 

This chart shows mortgage interest rates over the past 30 days.

Sounds like a good plan - from a financing perspective, its a good idea to start researching now - for better or for worse, a lot of lenders view 1st time investors without a primary residence with a owner-occupied mortgage as a flag and might limit some options

@Clark SpaldingSubject to is not allowed by the bank and why would someone want to sell a home and still have a mortgage on it?

None of the traditional mortgage lenders I've talked to so far are willing to do this, as it's more of a commercial loan. 

Economists say a resurgence in mortgage rates and inflation could be softening sales at the start of what is traditionally real estate’s busiest season.

I love the current benefits to my personal tax return with depreciation and mortgage interest.

I am finding solid tenants with the proper vetting and it usually takes about 21-30 days to find a solid tenant.

First, it's abysmal at tracking mortgages.