We have been trying to learn everything we can but we certainly don't want to make uneducated and poor investment choices. 

I also always received multiple bids for larger projects. 

We are beginning to see a bit of a slow down with buyers in San Diego, this could be a great time to get back in the market depending on your goals and neighborhood of choice. 

@Javaughn HarknessExcellent choice.

We have 2 loan scenarios: FHA with 3% interest rate and 3.5%($17,000) down BUT we have to claim $150k of income on our tax returns for 2 years and pay IRS 70K (2 years worth) total in taxes because we are self employed. 2nd scenario: private lender offering 4.5% interest rate with 5% ($27,000) down 8 year interest only loan converting to fixed thereafterwhats the wise choice?

Also look at any restrictions on sq foot of buildings to square foot of dirt--meaning the vacant seems buildable dirt might not be as buildable as you think (sometimes upscale areas are larger lots than other areas by zoning law). 

If you can’t agree on a price that you are happy with then your only choice is to cancel during your due diligence period.

You don't buy BRRRR's, you buy SFH that turn into BRRRR's, so I'm not sure what the real question/choice you have here is.

It could be he's selling to liquidate, going into larger deals, or tired of owning homes. 

I've purchased a couple of SF rentals and used a proforma spreadsheet to visualize the long term numbers. I'm not looking at a 10 unit apartment building which requires a commercial loan - different amortization time ...