@Charlie MooreSection 8 pays a little more in my area but to get tenant in takes a few weeks opposed to a day or two with traditional tenants.

What are your opinions on using an online lender vs using a traditional bank as your lender?

These countries traditionally have not had any restriction on the will of the majority.

Despite having great cash flow on rentals, I'm getting turned down for traditional 30 loans by banks for the Debt to income too close to 49%.

Traditional lending How did you add value to the deal?

Traditional Financing How did you add value to the deal?

The costs have to reasonable/legit, but they are not capped by the security deposit in any way.As to the OPs question, I believe everywhere in San Diego county, the traditional security deposit without any special circumstances (pets, water beds, etc.) is for the security deposit to be one month's rent. 

Traditional 20% down How did you add value to the deal?

@Bella Gilbert as a beginner foreclosures may be a little tricky to deal with as there are a few more steps than a traditional wholesale (assigning of a purchase agreement) .What worked for me was driving for dollars and specialized tax lien list.

Assuming rents rise over the years and I make continual improvements to the place, I would be set up to transition into the traditional hacking model of renting one unit in whole and occupying the other side myself.