I currently am completing a garage conversion and another Junior ADU that will add 1278 sqft between the two units.  

With the WSJ Prime Rate in the 8%s, you're probably in the 9%s on your line right now (just an assumption).

I'm thinking of keeping the 2bedrooms at the current rate. 

I completed an owner build garage conversion in Sac in 2022 and would be happy to share my experiences.

However, despite several months of searching, I'm struggling to find properties that break even, especially with current interest rates.

.- Perhaps you think rates are going to move lower.

I am looking at my first rental property investment, with the current rates and San Diego pricing cashflow is very hard, so I wonder if I should remove tax property and insurance from my cashflow calculations as they are 100% deductible at some point.

You cannot spend too much time on any one door because you cannot charge beyond the market rate for any single door, so each door needs to follow the process efficiently and precisely. 

But given our high cost city and sky rocketing interest rates, early and simple analysis of any property has so far resulted in negative cash flow. 

I would actually recommend having a conversation.