Does this deal make sense for a SFH in Bayview?

[Hung Dao]

Hi everyone, I'm planning to pull the trigger to become a first time landlord in San Francisco and had my eyes on a SFH in Bayview neighborhood. The 2B1Ba house currently have 2 section 8 tenants paying market rate at $4500. Here are the numbers:

Asking price: $850k, seller is motivated to sell at asking price

Mortgage, tax and insurance: -$4,080.24

Utilities: -$265

Basically I have a bit more than $100 each month for deferred maintenance. I think the existing section 8 tenants would help with uncertainty in the rental market and is recession proof. Also as a first time landlord I don't have to look for new tenant. There is potential expansion to add a legal bonus room or a unit but I don't consider it now since I don't have the capital yet.

Do I miss anything? What are the risks that I didn't see? Also pls give thoughts and advice. I live in the city and want to try it here first before looking elsewhere.

[Brian Garlington]

Help me out.........is this a 2bd/1 ba house with 2 Section 8 tenants paying a total of $4,500? 

Is it two separate Section 8 tenants with two separate HAP contracts?

I generally have not heard of the Housing Authority giving two separate HAP contracts to the exact same address for a house. 

Water and Sewer is what Section 8 will definnitely make you pay for....Is that your utilities?

You also are not including CAPEX.

You also aren't including Repairs....that can potentially be anywhere from 5-10% on average.