House Hacking in So Cal Market - How to make it work?

[Sam Bewley]

Hi All! First time posting here. I have been studying and researching this method and would love to get my foot in with my first property. I have been looking for some great deals that I can get creative with my first house hack being a high rent and high priced market. 

Scenario:

2 bed 1 ba house in high appreciating area in southern ca (west of the 5 for anyone who lives in San Diego) which is high priced now but being coastal and in an up and coming area is set to roll. 

1 granny suite in the back with full kitchen and bath + Separate barn unit (not zoned for a dwelling unit but is carpeted). 

This property is about 3400 square foot of land and zoned R3 (thinking strong potential for future to build additional units). 

I am on the fence about this deal... asking is 600k and total costs would be about 3700 (with PMI) through FHA at 3.5 and can probably generate 2100 in rent while living in the granny suite. I'd be eating extra cash until I build up the 20% to get PMI wiped away however - the R3 zoning is a huge oppty to get into this area with as it is a large plot of land for the area.

I am wondering if this investment makes sense... on a black and white stand point however - the future potential has got me considering it heavily. 

Anyone have an experience in the so cal / N. San Diego market that could provide some insight?