Buying a small Multi-Family with one unit already occuppied!

[Jay Maranan]

Hey BP,

I'm interested in buying a 3ba/3ba SFH with a permitted in-law unit in the basement. The property is in San Francisco and the top floor is occupied. The price for the house is fairly low ($800k) considering the house is in SF. The area is ok and is getting better. Not sure how to approach this being that there is already a tenant occupying the top floor paying low rent ($1500) for the area.

Any advice on how to approach this?

Thanks!