My LA property cash-flows a little bit but the long-term appreciation, mortgage pay-down, and tax depreciation on that property are what really move the needle.In reading your post, a few thoughts come to mind...1) Let's say that your LA properties are all breaking even after all expenses are paid, well that means that your $500K combined salary is not required to pay for any of those assets and is going strictly towards your living expenses, mortgage on your primary residence, primary HELOC, etc.

If you are licensed to do residential loans then you must follow strict guidelines and laws to protect borrowers.

The conventional route is going to be a bit more strict, but it will be faster and generally have lower costs (monthly and upfront).

The current code is strict about living space requirement like steel/concrete PSI/vapor barrier.

Was very strict on my contractors bids, interviews, and who I trusted.

I would assume around $50-100 a day if they’re strict. 

So if you were interested in single-family, I would recommend Conventional (like @Karl McGarvey said) because the inspections/appraisals are more stringent for the FHA, and because 5% down is pretty close to 3.5% down.But in the case of the duplex, even though you may have more strict inspections/appraisals, 3.5% down will yield much higher cash-on-cash ROI than the 15% down.Let me know your thoughts!

Only they are being more strict on the deals they buy do to the uncertainty of the market and lower home prices. 

By that I mean that I mean:1) We have strict tenant qualification requirements that we don't deviate from (income must be 3x rent, 1 month security deposit, solid employment, credit score, no felonies, etc.) 2) We lay solid ground rules upfront so everyone is on the same page, like no drugs, late night partying, loud music, locking up common areas, security, etc. 3) At the same time we like to be friendly, personable and be flexible on things that we can accommodate. 

If you're in Los Angeles the rules are very strict and favorable for the tenant.