Owner Occupied Investment Question

[Carrie Maultsby-Lute]

I'm trying to decide between two potential owner occupied investments. It will be our first purchase and we're trying to think through these scenarios in the Oakland, CA area. We see the first unit as one that we would live in for 3-5 years and then rent out. We see the second unit as one that we could live in 5-7 years and then rent out or sell.

We're trying to assess potential appreciation on a home closer to downtown (Lake Merritt) with more urban feel vs one that is more residential East Oakland Hills. We want to make the best investment decision as well could live in either.

1. City living.Two-bedroom with an additional small room that needs some fixing up but that is in a desirable area, centrally located near downtown/lake area. Listing price is 368k but may likely go for 400-420k (especially if doing conventional or FHA). Estimated rent 2k-2.5k. Downside, on a major street. Needs fixing (e.g 15k- 30k). Assumptions, this area may appreciate faster as it's closer to downtown and San Francisco.

2. Residential living. Four bedroom with an additional room that is in a desirable but more residential area that is 5+ miles from downtown/lake area. Potential off-market deal but price would be around 430-450k. estimated rent 2.5-3k. Turn-key.Downside on a busy street and further from heart of city. Assumptions, this area may not appreciate as quickly because it's a bit further out of downtown.

Thanks to all for weighing in. We have to move fast.