In general, the federal government doesn't care HOW you borrowed the money, they care what the borrowed money was used for.

Rents are already outpacing wages,  so be careful of speculating future rent increases in the near term. 

My wife is in health care too.

We add in insurance, property management, CapEx, maintenance/repairs, vacancy and any other potential expenses based on the property (refuse, water, etc. fo MF and lawn care/pest control for SFR).

Or you find out that your PM found his wife under the keyboard player of an 80s cover band last week and is locked up for ag-assault in the county jail for thirty days with no one available to collect rent or continue the process of evicting those people on Center St. who might or might not be running a under-the-table daycare center/illegal pain pill distribution center out of your property...Does your whole house of debt collapse because Murphy wasn't in a good mood this week?

IMO, if they are good folks, pay on time, take care of the place - FANTASTIC!

Otherwise, to invest locally I would be very careful and use those things I have mentioned about out of state investments. 

Yesterday, the city informed me that i was in violation of an ordinance to not have cracks in driveways over 1" wide and that it must be repaired immediately.Does anyone have any ideas of how to resolve this issue? 

I tell them "San Diego is an awesome place to invest, if you don't care about cash flow".  

The downside of an FHA is that upfront, you will finance 1.75% of the base loan amount in the form of financed mortgage insurance.