Im not worried about the retirement fund related risks.Or, I can simply pay the 6k loan, and pay 5% down and the bigger PMI. 

However, zoning dept said just simply sign 1 lease w all of them so all their names are on one single lease as roommates and that solves it all. 

It saves me money on double closings, saves me stress and headaches on drama, it builds our reputation as honest and simply the best.

@Kyle Wilson this is simply a long term flip.

Thirdly, its comments like yours, telling people to watch their tone on a forum where its nearly impossibly to tell what the tone is unless it blatantly obvious, that make people more likely not to comment than me questioning a finance strategy that was lacking some key piece of information.

Hello,My girlfriend and I are new to San Diego CA, and are very interested in real estate investing.We have only been here for about 10 months so we lack geographic/ demographic knowledge.

If you lack a track record, build one or get a partner who has one. 

If you are attempting to simply work the renovations in over time, you run the risk of the rehab budget conflicting with your operating budget.

@Theresa Harris thanks Theresa, and i can possibly get it for 93k, but im lacking financing.

Sorry, I do not have an easy answer but in my opinion you are dealing with a situation that people lack the understanding and/or knowledge.