Newbie Working on First Deal in Oakland

[DG A.]

Hi All, 

My name is Danny. My day job is in A/B testing websites and doing conversion rate optimization to get more revenue/purchases from people visiting websites. 

I've been pounding the pavement pretty hard since December of last year to find a solid first deal in here Oakland CA. I'm finding that good deals are few and far between, like 2 months or so between good deals rolling on the MLS. I found a duplex out by 73rd Ave in Oakland that I Offered 380K on, but was sold to a cash offer for 294K. Bummer...

I'm finding it's too expensive for me around Lake Merrit, West Oakland, North Oakland, as I'm only qualified to buy an SFH for up to 430K.

I am going to owner occupy the property I buy, so I don't want to end up in "too rough" a neighborhood out in East Oakland. I think I've settled on Fruitvale (94601 zip code) as my sweet spot, where homes are cheap enough, and I can see myself living there (and enjoying lots of tacos) until I get into my next property. 

Here's my situation:

• I've got 24K in cash for a downpayment
• I'm trying to finance with an FHA loan
• I can qualify for up to 430 on an SFH, or a 45% Debt to Income ratio considering additional income from rental units in a multifamily

I'm having trouble finding deals. I think listing agents shy away from FHA financed offers, because they take slightly longer to close.

I'm also confused by some things. Apparently it's legal to raise the rent on single family homes in Oakland, but not on units within multifamily buildings. 

I've considered looking in Richmond CA, but looking over the rental prices on craigslist, I'm seeing that rental income is kind of unpredictable in Richmond. Does anyone else feel that's the case?

I'm eager to jump into my first deal, but I keep hitting snags. Any advice?

Nice to meet you all. 

[Joshua David]

Persistence is key. keep making offers. You never know when you might end up with a successful second-place-to first-place-offer. Based on the information you gave, I would say that a duplex in East Oakland could carry a certain amount of risk as your cash is a little bit lean considering the potential liability of a duplex in a less desirable area. Best of luck to you.