I bought the properties from another local investor and would like to get a hard money loan for the rehab. 

Attend a local meetup that attracts different investors.

But reach out locally and see if there's any option at all.

Reduced down payments are possible for multifamily buildings using financing options such as FHA loans, which are less expensive than traditional loans.Find local programs that can help with a down payment, look up programs in your region, get in touch with lenders or mortgage brokers in your area, and fulfill the eligibility requirements by attending homebuyer education workshops.

My suggestion  for you is to join some local REIA and find contractors there. 

Hi Cory - I think another good way to gauge demand is the check local real estate investment Facebook groups, especially those focused on your target clientele 

Most local banks have an online banking option.

If so, is it seen as a risk due to localized natural causes?

I’m not stupid.Real estate is local…

Since we are new to investing, we want to start locally in San Diego.