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.

Is this a true 10% cap or is this what I refer to as the "realtor special" where taxes, insurance, water and a nominal maintenance budgetary number is included.

The good part about practices is that they require less fiscal investment and generally can be better "cash cows" than a business.  

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

Don't let your maintenance get too far behind.

This does not appear to be an issue for the tenants or the property maintenance (ie, no calls about tiles, soft floors, rot, etc).  

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

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.

$6,100 PITI + Maintenance, Cap Ex, & vacancy reserves Versus whatever similar rent would be in the area.If you're okay with this deal not being a homerun initially, but allowing you to live in an ideal location in a nice home with slightly less mortgage cost, then it may be worth it.