I don't know what you consider a lot of money spent on advertising and marketing, but I can tell you that $10,000 per month won't scratch the surface.  

If you are 100% LTV and there is something that causes you to sell the property you will have to bring money to close.

Very cool BP community reaches so far...Two year work history and US tax returns for FHA.

So I wanted to purchase something that would not only make me money - but also a place to live.

Are there folks out there, private money, that will provide second positions loans?

Debt is tax free, sale proceeds are not.

I have seen many get completely ripped off and worse, contractor takes the money and poof their gone.

After a seasoning period, including EOY tax forms, you may be able to help establish for the seller they are not responsible,  but the main message is-this is not a strategy for a vanilla listed Jack and Jill Homeowner that needs to buy again right away deal. 

You’re looking at turning a $500k gain from tax free to a tax bill in excess of $125k.

In terms of new construction, a couple things to be aware of in San Luis Obispo County are water shortage issues and development fees/taxes which can significantly increase the building costs.SLO city and the neighboring cities are particularly diligent on their water usage, as most of the county's water supply comes from three surface water reservoirs and a groundwater basin.