Pros:New construction so builders warranty applies to certain things and very limited maintenance for first 5 years if not 10.Use VA Loan to leverage into a $700k property at no down payment, just closing fees and VA Funding fee(which is wrapped into the loan).Can Self manage the first 3-5 years until new assignment saving that money.Can pick durable materials upfront to eliminate long term maintenance costs.Cons:Negative cash flowHighly leveraged if market drops(not planning to sell as goal is equity at retirement)Self Manage for a few yearsFirst year Numbers While living in it and self-managing: $700,000 Loan, 0% down using VA LoanRent 2 units: $2700, 2/2 -$1200 & 3/2 – $1500P&I – $2876Tax/Ins – $750Vacancy(10%) – $460Maint(~5%) – $200Management(0%) – $0 - Self Manage while living inCost to Live in remaining 3/2 unit :$1,5865th year Numbers as a triplex rentalRent 3 units: $4600, 2/2 -$1300 & (2) 3/2 – $1650P&I – $2876Tax/Ins – $750Vacancy(10%) – $460Maint(10%) – $460Management(10%) – $460Cash Flow: $-405I see the upside of building approx. $20k+/year in equity(depending on appreciation) for essentially $0 money down even with a negative cash flow. 

However, the new locations are worth more together than the original location...and, I have twice the cash flow....and, I've eliminated the CAPEX costs from hitting me in the form of "out of pocket" costs.

Some restaurants are eliminating it and it's a uniquely American concept.

I get a platform bed to eliminate the box spring and actually I love the zinus frames.

They don't get to keep all the rent from the remaining lease and leave the unit un-rented or re-rent it and keep both rent payments....not how a lease works in court.There are ALWAYS exceptions to the rules, but in this business, you mitigate risk.... you cant eliminate it.

Eliminating recurring consumer debt to a manageable level if not completely, and budgeting.For example, clearing that $800 in CC debt or personal loan is better than seeking a property with cash flow of 300 dollars.Starting from a lean budget with a 3-6 month emergency fund is more plausible.

A second advantage I could see is the LOC would eliminate idle cash sitting around earning nothing when it could be better invested. 

One, San Diego and San Diego County are behind the ball on regulation of vacation rentals.This has become an issue in some communities, and if you are interested in exploring this, I would urge you to thoroughly investigate local VR ordinances and also any potential moves to restrict or eliminate vacation rentals in the market you are considering.

First, this eliminates inspections to get a loan.

You can borrow your own retirement money out for opportunities that you want to profit from personally, and the hidden tax that occurs in Roth IRAs (Unrelated Business Income Tax or UBIT), is virtually eliminated within a 401K.