Does this deal make sense for a SFH in Bayview?
Hi everyone, I'm planning to pull the trigger to become a first time landlord in San Francisco and had my eyes on a SFH in Bayview neighborhood. The 2B1Ba house currently have 2 section 8 tenants paying market rate at $4500. Here are the numbers:
Asking price: $850k, seller is motivated to sell at asking price
Mortgage, tax and insurance: -$4,080.24
Utilities: -$265
Basically I have a bit more than $100 each month for deferred maintenance. I think the existing section 8 tenants would help with uncertainty in the rental market and is recession proof. Also as a first time landlord I don't have to look for new tenant. There is potential expansion to add a legal bonus room or a unit but I don't consider it now since I don't have the capital yet.
Do I miss anything? What are the risks that I didn't see? Also pls give thoughts and advice. I live in the city and want to try it here first before looking elsewhere.