We typically see first distro going out at 90-120 days.  

This is essentially what banks do.  

With $16K available, that limits you to an $80K house (which typically requires 20% down for an investment property mortgage).

There's a narrow band in the middle with good rates that you typically see advertised, then a "high balance" range where they aren't so good, then a "jumbo" range where they get better again (sometimes we find ways to shove "high balance" loans into "jumbo" for that reason).

Since you're essentially looking to "house hack," FHA loans allow for you to use 75% of the expected rental income from fair market rent as determined by an appraiser on the non-occupied units as qualifying income. 

Having said that, you must be aware of the typical tenant and what they will probably do to your property.

In Newport Beach, we're better off targeting millennials with good jobs because they typically are too busy working, still saving for a home and are thankful to have a nice place to live.

What are the typical vacancy and repair rates are you seeing for post repaired buy and hold rentals in these areas? 

They all have quirks in their lending committees (typically they carry their own paper) so you want to know if they're a good potential lender for you.

Ryan typically I would agree if this wasnt so unique.