San Diego passes a lot of dumb 'blue' type laws (like you can't use section 8 as a factor when looking to rent to someone. 

As a lawyer, I just want to add that before you make any type of investment in this fashion, get some personalized advice from a qualified attorney.

But you're right, you typically won't get the types of returns you could get if you were buying and managing property on your own (But this really depends on the property type you're in, etc...and there are always exceptions to this ). 

Echoing what others have mentioned, we'll need to take a look at your credit scores/history, and then also talk about possible co-signers if you want the best rate.As for down payment, that really depends on what kind of property, purchase price, types of rents, etc. 

@Bridget Smith-Osbourne Hoarding is often a symptom of some type of mental illness.

Location:  What type of tenants are you going to be having there? 

It is harder to get traditional financing for these. you need to get some type of construction loan.

But, as we all know, these types of issues are just part of the landlord life!

Is there a comprehensive list of states where this type of transaction is or is not legal?

Finally, certain types of property are specifically excluded from Section 1031 treatment.