Particularly for your first few properties, I'd highly recommend that you manage the property yourself (if possible), but that's usually only possible (or most effective) if you live near the property or visit it frequently.

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

I know in Philadelphia if I had a 2 BR house it would be viewed favorably by tenants who are seeking 2 BR living situations because most inventory will be apartment style living and for this reason would achieve a rent premium.

Is cash flow the most important or is equity growth more important to you?

We're currently renting downtown and looking to get started as first-time home buyers in an owner-occupied duplex situation to start our path in rei. 

@Tim Holt, Yes INDEED house hacking is the best option for most 1st time buyers.  

Also, statistics show that most FSBO's do not net as much as using a REALTOR® despite the commission payout.

I am currently under contract for a property, and my inspection period has just expired.

@Michael Darten  Most property management agreements have the monthly PM fees based upon a percentage of rents collected.  

Otherwise with the dwindling tech sector in SF, and the remote work (2-3 days a week) that is most likely here to stay, it just doesn't seem like a strong mid term market to me.