With market rates high all over, i am trying to understand what kind of property makes more sense in terms of returns.

You can hold on your RE bay area  investment plan for possible other alternatives, such as equivalent investment in out of the state buy and hold rental properties that will provide better returns in terms of the equivalent ratios, or keep your money locked at this time.For other investment plan alternative besides lending your money for passive income, PM me and we can discuss in detail how you can structure your RE investment plan as possible suitable GAP investment  you can control while timing for your next move in bay area RE buy and hold for rent in the next cycle, if there ever is going to be an opportunity.

In terms of the easement-I would go down to Nashville storm water on 800 2nd Ave and talk to the storm water dept to tell you what their requirements are in terms of that drainage system.

A good starting point for new investors in terms of price point would be SE DC and PG County. 

In terms of interest rate, I think your lender will be more concerned with down payment, credit history, etc.  

Hersh, it is my opinion that studying the history of past bubbles can be educational but far from instructive in terms of predicting future ones.

Some of the graphs almost look flat in terms of market appreciation and now that we're back at or slightly above the old market peak, the projections are scary.The rental market is increasing quickly over here which means that it'll be more advantageous to have cashflowing properties rather than buy and hope for further appreciation.

-  Is there any way around this obstacle in terms of using my own money to invest?  

How do you guys feel about these areas of town in terms of quality tenants' desire to live there: Dodson Ave northeast to Campbell streetDayton Blvd and HWY 27Thanks! 

That type of scenario, where a family has owned it for a zillion years but not done updates in ages, but it's still a complete and functional home, is about as far as you can push VA loans in terms of fixers.