First Time Buyer!!! Advice for Bids & Rent (SF Bay Area)?!
I got pre-approved for a 3-5% down 30 yr mortgage @ 3.75%.
I'm looking to get a 3/2 house in the Bay Area. I plan on living in one room with my girlfriend while renting the other 2 rooms to friends with stable incomes. I understand that there are risks associated with this and laws that favor the tenants (for example I may have a tenant that stays for free for upwards to 6 months). What are your thoughts on this? I plan on reducing my mortgage payments significantly through renting the other rooms out to build equity up over time. Someone recommended that I look into duplexes to save the headache of having to live with potential bad tenants (who may be my friends :x). Thoughts?
The bids I will be making will be for houses that are commutable to SF whether through the Bart Station or the Ferry (~40min-1hr commute). A real estate agent told me if I make a bid too low that my offer will be rejected and that's it (due to a higher bidder and that there are many bidders per house---upwards to 10 or more). Is there any way to put a counteroffer to raise my bid? Can I still negotiate for the best price in the Bay Area? It's uneasy to put together a bid knowing that I can't adjust it. Any advice for this?
Thank you!!!