Im pretty sure this is a horrible deal, just help me to understand why

[Brandon Heath]

Hello BP!

First of all I am an EXTREME newb to any type of investing, so I apologize in advance for all the needless questions. I live in San Diego county and would like to try and purchase a small multi family in the next 12 months. I've been looking around and trying to get a grasp at maybe what I could be getting myself into. This property is just down the street from me and I cant get it off of my mind (dangerous emotion). So I thought it would be great to run numbers with all of you. I find myself trying to act like this would work and your job it to crush my dreams and save me from myself. 

The property is in Poway California, here is a link to the actual listing Click here. 

• Ranch Style Duplex
• Side by side 2/1
• Asking price $525,000
• Current Rent $1,500 and $1,600
• Rent Comps in the nearby area are $1400-$1600
• Metered separately for water and electric
• Taxes last year $3200
• I would plan to live owner occupant for a few years.

Now I'm almost positive that from this I see why everyone complains about investing in California. With these numbers I would have to put like 30% down just for it to make sense. I of course would looking for an FHA loan but with these numbers that's basically suicide!  Highly unlikely I would be ready for this deal anyways but i thought it would be great to learn what type of numbers I should be looking for.