Bay Area FHA triplex sanity check!
I am fully underwritten for an FHA loan to buy a 2-4 unit property in the bay area up to $550,000 ( possible higher depending on the income of the other units).
I am considering a place in West Oakland, currently a slightly high crime area, but strong rental rates and low vacancies. The property is a 3 unit place. There will be very little work required at move in. I will live in the 1/1 and rent the other units. My agent and I feel it will go for ~500k. I am committed to buying a 2-4 unit property and want to be sure I have thought of everything. My commute will not be great, however, I only have to live in the property for 1 year, 2 if I want to avoid taxes.
Mortgage with taxes and insurance and PMI is $2800 utilities are $300. No capital improvements needed for some 5 years + I will live in one unit and the rent on the other units will total (currently ) $2300 (market) $3700. As some people may know it's difficult to get market rents due to rent controls tenant's rights etc in California. Over the next year after move in I will work on getting rents up to market.
Questions:
1: If you you know of another property that better fits my needs let me know!
2: Does anyone else own property in West Oakland? I am very interested in your thoughts.