A builder has special requirements when the financing comes from an FHA loan.  

Be aware that the lead paint laws require you to delead rental units within 90 days of closing in order to not be liabe for past tenants.

Required down payment is typically 20-25% depending on FICO, property type and level of experience. 

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Another reason why engaging an architect early is helpful is to ensure the layouts are permitted from the perspective of code requirements.

It's a block-by-block play that in my opinion & requires a visit so you can determine where you feel comfortable and also to ensure that you situate yourself where shopping (grocery shopping) is closely available. 

Based on the desired monthly payment, we use a financial calculator to determine the necessary terms to achieve that payment, considering the price the seller is asking.If interest rates are not specified, our initial offer includes our desired monthly payment along with their asking price, with a balloon payment due in year 20.

To obtain impact worthy return requires a lot of units.  

Property Requirements: Are there any specific requirements for the property being purchased, such as condition, location, or type?

What are typical down payment requirements?