Reduced down payments are possible for multifamily buildings using financing options such as FHA loans, which are less expensive than traditional loans.Find local programs that can help with a down payment, look up programs in your region, get in touch with lenders or mortgage brokers in your area, and fulfill the eligibility requirements by attending homebuyer education workshops.

My suggestion  for you is to join some local REIA and find contractors there. 

Most local banks have an online banking option.

Hi Cory - I think another good way to gauge demand is the check local real estate investment Facebook groups, especially those focused on your target clientele 

Since we are new to investing, we want to start locally in San Diego.

If so, is it seen as a risk due to localized natural causes?

Study up on legal issues, property management, market research, property analysis, and finance possibilities.Participate in online forums like BiggerPockets, attend meetups, join local investing clubs, and establish online and offline connections with other real estate investors.

Regardless, you will likely be adjusting the expense base to reflect the tax reassessment (which you can obtain from the local county), insurance (from your insurance broker quote), property management fee, and usual repair/maintenance expenses/admin/advertising/contract services/utilities.

I can get 30y just under 8% currently from my local bank (7,300/mo mortgage for $1 mil). 

I have been shopping around in my Local area and some of the plots seem a little steep but they do have good location.