My educated guess, based on the limited information provided, is that it would not work in your case, but there a few exceptions. 

Sounds like I should provide some details.  

Not sure about state laws for the insurance payout angle but if possible, you can always try and get a contract to purchase for much lower and close after seller receives insurance proceeds, then you can potentially have equity and a deal.But based on your existing numbers, taking it down as you stated would not be a good deal in my opinion and based solely off the info you have provided thus far.

Real estate can also provide the additional benefit of cash flow.

While I’m not a lender, you may be able to get a debt service coverage ratio (DSCR) loan with a less-than-stellar credit score, as long as you can demonstrate that the cash flow generated from the property provides a wide margin of safety for the lender.

I don't know that your original post provides enough information.

They do provide monthly updates and of course I hope it goes well at the end of the day but there is really no way to know for sure exactly how safe my investments are.  

Section 2(a) of article XIII A of theCalifornia Constitution provides that "a two-dwelling unit shall be considered as two separatesingle-family dwellings."

Also, I'd appreciate any advice anyone could provide. 

I am not going into those, since I haven't fully reviewed them yet, but those might provide more options to your situation.That's some info and #'s for you to chew on.