It's a better quality of life, closer to the water, and I think if you want to go 'SoCal appreciation' I'd go with the premium location for land.  

Fannie Mae actually encourages lenders to re-brand their stuff to create a sense of exclusivity (which confuses the hell out of borrowers), but at the end of the day it's going to come down to one of those two products (regardless of branding), or if it's a pure private sector loan then the interest rate pricing will be atrocious (it must beat a Wall Street index fund PLUS have a risk premium, or the lender/investor would just invest the money in a Wall Street index fund instead of lend it to you). 

Hey, is the insurance premiums for both properties $2,300.00?

I'd like to put about $50K-$80K to address all the issues and get premium rents. 

Pay insane premiums?

Since it is an owner finance I get premium for my property because there are fewer and fewer doing them. 

Maybe offer a premium rate or points if profit exceeds x.If this is a flip - there will be 3 additional partners.  4) The IRS- the silent partner of all flips.  5) Accountant or CPA to figure out how much to pay partner 4,  and 6) Realtors.  

He claims he can buy another door or two for the insurance premium. 

For many first time home buyers looking for a home, they find the lack of inventory creates a premium on the homes they would love to see themselves in. 

Also, I would pay a premium for owner financing options.