cash flow for MF owner/occupier

[Peter Perreault]

Hi BP. I'm new here and this is my first time posting. I'm posting to get  feedback from you all on the way I'm thinking about our first purchase and if there is anything critical I'm not considering.

We are looking for a first home purchase to be a mutli-family that we intend to occupy in San Diego, CA. Running the numbers (Rental Property Calculator) with all units rented at market prices leads to properties providing negative cash flow. From what I understand abut the market in San Diego, this is the norm for the neighborhoods we are searching.

Our long term goal is multiple MF properties providing positive cash flow. Near term, 1-3 years, we would like a 2nd property and to have a first property at least cash flow even when all units are rented. A first property at even cash flow in that timeline seems reasonable with a refinance to drop PMI and predicting future rental rates.

With us occupying one of the units in an MF property that would otherwise generate negative cash flow, I'm thinking about it as if we are paying a premium on rent. The benefit being progression towards our long term goal.

Is this reasonable? Do investors consider carrying a negative cash flow for a short time? How does that change if the investor is an occupier? Are there factors I'm not considering?