Advice needed - first-time landlording / house-hacking
Greetings all, I'd really love your input: I rent currently but have been in the market to buy in SF Bay my first residence. I was considering:
1 - small ~750 sq ft condo (just me) - pro's: smaller input (~$110K downpayment + closing costs)
2- larger townhouse or SFH that is more space than I need, to have 1 housemate help defray monthly payment costs (con's: shared living space with renter)
3 - duplex or SFH with ADU/in-law where I live in one unit and rent the other unit (pro's: no shared space with tenant; con: shared wall/yard; close proximity with tenant; larger input required - eg $200K-$250K downpayment + closing costs) + repairs if needed)
I did not expect my first ever offer on a property was accepted today and now I need to decide if I want to live in scenario #3 above. The property is summarized as follows and I would REALLY APPRECIATE any comments here re: what I need to ascertain to understand if this is a good setup as a live-in rental/house-hack!
3bd/2b upstairs, 1400 sq ft with attached 2-car garage; stairs lead to finished basement
finished basement: 900 sq ft, 1bd/1ba where bedroom doesn't have closets; but is fairly large space
heating/cooling control: not sure if top/bottom have separate controls
meters (gas/water/electric): just 1 for whole house
Location: schools are 4/3 rating, but on top of a hill with Bay Views. 0.5 mi from 80E freeway (one downside is you hear freeway from yards but not from inside house)
accepted offer price: $906K with 20.5% down, requires $9K of dry rot repairs, and $5-$15K to move washer/dryer connection lines into garage so that both top and bottom units have laundry access.
Monthly PITI: $4500 based on 3.4% interest and 20.5% downpayment
Rent potential for 3bd/2ba upstairs (1400sq ft) w shared garage and front yard: $3K-$3.2K
Rent potential of 1bd/1ba (900 sq ft) w shared garage and access to backyard yard: $1.8K-2K
I am leaning to live upstairs and rent out downstairs so I would pay $2500/mo to live on my own upstairs. Upstairs has a bay view and access to front yard.
I also have option to rent out a room if I want if I live upstairs.
WHat do I need to address to know if this is a good househack?