The market here is obviously tough (and we'd like to invest here or nearby for several reasons), but we have heard about second home loans that have more favorable down payment and interest options which could increase our buying power and allow us to cast a wider net during our property search.Understably this type of product would have to pass the sniff test.

That may be a more plausible option, just to have an umbrella policy for now.

You may try engaging a broker who can connect you with multiple options, rather than just checking with one lender. 

Insurance costs are also a bit different, but at the end of the day, the home was a better option.

He will try to justify that joining his program will be your best option, unless you have an unlimited amount of money and time to spend doing the research and learning real estate investing on your own, but the reality is that it does not take much time nor money to learn what he teaches, and even more; it will basically take a dozen of some of the best real estate investing books on Amazon and the time to go through them, subscribing to good sites as this one,  and joining a couple of good REIAs in your area, without having to pay for such expensive and useless mentoring.

Out of state investing could be a great option when living in marketplaces like you are in (OC).

I'm considering 1st position TDs with <70% LTV. 

Tons of rating factors that impact the price from one property to another.I say this without even considering coverage, service, and what you might want as there are usually choices to be made.Your best bet is to work with an independent agent that can provide advice along with multiple options for every scenario so that you can find the best value in each situation.

What are your thoughts on investing in a more affordable options like condos or townhomes in the area?

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