I am new to this forum and am trying to get some initial opinions on where I should invest.

Then rent the basement for $1099/mo initially and gradually walk that up over time.

In general, it is far cheaper to rent than own at initial purchase. 

Have the tenant initial and sign, hand them a packet on how to protect themselves from lead paint, and you're done.Hundreds of rentals and I've never, ever seen a Landlord with knowledge of lead paint.EPA Guide For Buyers, Renters, Landlords

Typically, somewhere prior to year 10, the total accumulated cash flow as a function of the purchase price has surpassed most of the higher initial cash flow areas.In addition, the property value appreciates (because over the long term San Diego always has but mostly because every metric shows that it should).If you desire you could choose to do it again (the final R).I am definitely not indicating that BRRRR is easy or requires no effort (it is not real easy and it requires a fair amount of effort). 

Is it possible to get a 2nd on a portion of the equity and leave the initial chunk of the loan at the lower rate?

A recap of my initial inquiry: I proposed a 40/60 equity split and I pay my investor a 8% preferred return. 

Below are a sampling of articles on the positive economic growth and why I'm bullish:The Chicago Neighborhood Initiative is heavily vested in the area and has attracted more than $350 Million in investments and created an additional 1,500 permanent jobs, leading to a job increase of 43% for the area (Pullman Revitalization).

Some of these CapEx items might have to be addressed as rehab in your initial purchase. https://www.biggerpockets.com/blog/2015-10-13-real-estate-capex-estimate-capital-expenditures

It has been listed about a month and I get a lot of initial interest but not many qualified applications.