The same lender said if they could come up with the other 5% they can go 30 year fixed interest only..This is more attractive for cash flow on a higher loan balance but will still be qualified based on the fully amortized rate and payment. 

Ideally we would like to cash flow or at bare minimum break even.

You stayed for a month.Besides no rules..and huge savings..and accessibility..seasonal rentals reduce property wear and tear.

I don't want to wait 5 years or so to save up 20% down but rather put 3-5% down to get experience and possibly cash flow when I do get my property.

Are you saying you will actually need to possess the 20% difference in cash to bring to the first mortgage closing?

A good starting point will be to pair with a with nationwide lender (if not all cash), check in with @Joseph Chiofalo for financing without a US credit score. 

If my bank would open a checking account for me, then not registering the subseries would save me trouble and exposure.Ultimately, I don't know what's really true or who to believe, and I haven't finalized anything.

I assume this allow them to come to closing with less cash down. 

Currently, I find myself in a situation where a significant sum of my cash is held up due to complications between these entities.

Prop 13 is likely saving you over $150/month and if you loan us from 2020 it is likely less than half of todays rates.