There are a few options that some people have used when they were looking to buy a new home before selling (and ran into DTI issues). 

My question is should I stick to a SFH in my local market in a good area or South Jersey?

Welcome to the Taxation Gray Area club! 

Presently  traditional banks construction debt will be  WSJ Prime +.5-1% which is only 2-3 points higher than where most Alt lenders are. A

Continuation,Or is it more or less on the builder to build their floorplan in the area of your desire? 

My question is should I stick to a SFH in my local market in a good area or South Jersey?

For VA loans, I think I can speak for almost all of us in stating no veteran is likely going to let you assume the loan unless you also are a veteran and can use your VA loan entitlement.

It's important to consult with a tax advisor or real estate attorney for personalized advice, as this is a complex area.

I am looking to start my real estate investment journey but it is difficult starting out in the bay area.

There are a number of horrible agents I know (some with questionable ethics) that have cultivated Zillow reviews and can show 50 five start reviews, while some really good agents don't look well on Zillow at all, simply because they don't pay for Zillow and consequently do not cultivate the plattform.