Perhaps your rents are just higher, but I wouldn’t suggest getting into a negatively cash flowing property especially for your first one.

You should speak with a CPA and a tax attorney to be safe.Regarding your thoughts about 1/3 equal splits - sounds good until you check out the cost of getting a DSR rehab loan or borrowing hard money.

One or two little mistakes in your underwriting, a miss on the walkthrough, and you will blow right through your profit and come out in negative. 

I believe San Diego is a great RE market but the reality is it is very competitive and most purchases have negative initial cash flow.  

@Robert Bell We are living through these as we speak.

When it comes to raising capital, appear this way, speak that way.

---NOTE: a conforming loan is overall CHEAPER than an FHA loan due to FHA upfront MIP being nonrefundable if you refinance or sell.Recommend you speak with a mortgage broker about all these options.

If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general.

Paying it down faster doesn't change your payment.I recommend you speak with your lender so they can explain this to you.

Will getting this second home loan right now, affect me negatively when I go apply for the construction loan in the next 1-6 months?