Need a minimum of 25% down in order to get a conventional loan.  

Do you think you will qualify for a conventional loan for this?

As @Jonathan Makovskyand others have pointed out it get out in the different neighborhoods and see what you are dealing with to achieve your 2% on a conventional buy and hold.

As a fellow Californian,I will tell you that your small salary doesn't pay for an apartment let alone a multi-family home on a conventional loan.The bank will expect your PITI monthly payments (Principal,Interest,Taxes,Insurance) to be no more then $650.00 per month on a gross salary of 2000.Your gross salary must be 3 times larger than the payment on a conventional loan or even paying rent.The rent you would charge the other families is not allowed to be considered income for the debt to income ratio for their consideration until two years of successful ownership has passed and shown on your tax returns.

After trying 2 conventional rehab loans that were denied due to high debt/income ratio, I am now trying to get private lenders from people I know.

Then take an inventory of your talents, contacts, and resources.

Most other conventional outlets have stringent net worth/liquidity requirements for the sponsor, but that's not necessarily an issue on the CMBS side since cash flow is king.

If I'm looking to rely on conventional bank loans, banks in Cayman consider any properties in excess of 2 units (triplex or higher) to be 'commercial' for the purposes of lending.

Robert the last time one was done the economy was down so you could get space for cheap to do an event.These days everyone ( hotels, convention centers) charges a mint to put something on of that scale.

I feel that I have a good grasp on how they work ( the Financing structure, the funding of the Repairs into the Loan, Interest Rate, Points, Seasoning Period, Down Payment, etc. )What I'm still unsure of , is what is meant by a 5 or 7 year ARM ( as the Initial Loan that you get when you use a Portfolio Loan from the Get Go , But then after that time is up ( the 5 or 7 years ... depending on which ARM you went with ) , how then does the Financing , and More Importantly my own Personal PITI on the Property get effected, by me then having a 15, 20 or 30 year Conventional ?