Need HELP with this house hack deal! Does it make sense?

[Kevin G.]

am considering purchasing a 3-unit property in my area and house hacking it with my family. Currently, I am renting in the Bay Area, CA and paying $2750/month for rent, not including utilities. The property I am interested in is a 3-unit property with 2 separate units in the main house and an ADU in the back of the property. The property is currently for sale for $1,050,000, and I plan to put as little down as possible, so I am considering an FHA loan with a 3.5% down payment.

Based on my calculations, the back unit should rent for $2600/month (2 bedrooms, 1 bathroom) and the ADU should rent for $2200/month (1 bedroom, 1 bathroom). The ADU can command a higher rent since it has its own garage and is very large.

Assuming my calculations are correct, my effective mortgage payment should be $7838/month. This includes principal and interest of $6091/month, home insurance of $233/month, PMI of $490/month, and property taxes of $1024/month. However, with the rental income factored in, my effective mortgage would be approximately $3000/month.

My current income is around $145k/year, and I've been told that FHA loans will use rental income towards your income to help you qualify. The property has been on and off the market, so I am thinking of offering less for the property. If the seller agrees, I can effectively get my mortgage payment to be the same as or less than my current rent and save money.

I would appreciate any thoughts and ideas from the experts on this forum. Is this a bad idea given that I'm not saving a significant amount of money with the house hacking situation?

Is the home just too expensive and interest rates too high for this to work? Also I would HAVE to break my current lease to move into this property if I was to purchase it. 

Thank you!