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Hi: I've just moved back from London and have some money stashed away for a first-time property purchase. I looked in SF at some 2, 3, and 4 unit houses... thinking I could get a bigger, more expensive place, be a live-in owner/landlord for the other units, renting them out to help pay the mortgage. However, after looking at the first few places, each of them had a tenant that had been there for like 10 years, paying like a third of current 'fair' rent because of rent control. Running the numbers with this, you can't come close to covering the mortgage, where you might be able to if the units were paying 'current market' rent.
Now I'm thinking it's a huge risk and doesn't make sense at all to buy a multi-unit and be a landlord in SF, cuz overtime you could get stuck with a long-term tenant paying way low rent. Am I missing something, or should I just move my search to Marin (San Rafael), or non-rent-controlled east/south bay?
Thanks for your wisdom!
A Bit Confused