What is the best option/mortgage for me? 

Unless you are planning a DST (not sure if SDIRA's can hold this type of investment) which is similar to high rate bond investing depending on the rate of returns. 

Please keep in mind that we do not want recommendations for strategies involving financing, as we want to get some core holdings that produce immediate cash flow and not have that NOI reduced by loans at current rates in light of the current cap rates.Also, just FYI, we are in California and no way to get around that residency in time to reduce state taxes.

You can research the occupancy rates, rental rates, and average length of stay for properties near hospitals.

The rental home already rents for $1250 and again I have no mortgage.

With interest rates at a steady increase, typically investors in Multi units are looking at 8-11% interest on conventional, commercial, and PML options.

Is there a difference between different housing authorities like Boston housing or Salem housing in terms of their rent rates and smoothness of process?

Like the car salesman/hustler who converts “ups” at a super high rate; or the guys hustling oil well participations over the phone.  

When shopping for such a policy recently, after looking at tons of them for clients I worked mortgages for, I chose to avoid the priciest options like Proper.

I'm very conservative and want conservative leverage percentages, long-term fixed rate loans, high skin in the game and sponsor that has experienced at least one full real estate cycle and lost little to no investor money.