Another bad deal.... but help me learn how it could be a good one

[Brandon Heath]

Alright, I really thought I found a good deal but after running some numbers turns out it's not even close! Like way off (i'm still very new so if you laugh just try not to choke). Here we go...

So I found this deal on the zillow and was curious because its being sold by the owner and they state right up front that they do not want to be contacted by any agents. They are selling a duplex in a pretty good area. 

$429,000

Both units are 2 beds 1 bath. 

They currently get $1300 each side

One of the units needs a little "work".

Would like to use an FHA loan putting 3.5% down

I would live in one unit as owner occupant 

I called the owners to see why they are selling. Turns out they are an older retired couple who live on the other side of the county and are selling off their units that are not close.

So I ran it through the rental calculator and mentally cursed a few times. In order for this deal to work I would need them to sell it for like $350k 

I know I should be looking for off market deals and not Zillow. I also know that I live in a little place called San Diego and its not so cheap. 

Is the only option to either put 20% down or put in a super low offer and pray? 

And before 14 people come in and say "you really should try to invest out of state" I would be living in one unit. So either I continue throwing large amounts rent money down the drain or I try to make a smart move and invest where I live.