(just kidding you some of these benefits are indeed counter intuitive because so many of the gurus and experts out there only focus on the obvious). 

It might also behoove you to hire the firm to help you navigate what you need and maximize every tax benefit out there. 

You will reap long term benefits by doing so.

Do you have a CPA that is applying the tax code for your benefit?

These areas won't give you cash flow without significant downpayment, but their price/rent ratios are much more friendly compared to other cities in the Bay Area and you can also benefit from their appreciation.Another thing to put on your radar is the Real Estate Professional Status (REPS) election.

Lenders are motivated to see the project succeed since they’ll benefit from the upside.

If this is seen as advertising or not allowed, sorry in advance, but I haven't seen a real life 0% down payment in quite a while, and Navy Federal is reputable, so thought those of you starting out would benefit from knowing there is actually one out there.

Impressive Rent-to-Price Ratios: Average rents for 3-bed homes are about $800-$900/month, potentially yielding 12-15% gross returns.Economic Transition: While historically industrial, Bay City is diversifying into healthcare, education, and service sectors.Revitalization Efforts: Downtown redevelopment and community initiatives are breathing new life into the city.Strong Cash Flow Potential: Low property taxes and insurance costs contribute to robust monthly cash flows.Let's crunch some numbers on a hypothetical deal:Purchase Price: $75,000Down Payment (20%): $15,000Mortgage (4.5% interest, 30-year fixed): $304/monthProperty Tax: $100/monthInsurance: $60/monthEstimated Repairs/CapEx: $100/monthProperty Management (10%): $85/monthTotal Monthly Expenses: $649Potential Rent: $850/monthEstimated Monthly Cash Flow: $201Cash-on-Cash Return: About 16.08% (not including appreciation or tax benefits)These are rough estimates, and individual properties will vary.

You should take advantage of the personal residence tax benefits.

These options would still keep your costs down while offering practical benefits that could attract a larger demographic of renters.Starting with one of these simpler conversions also gives you the flexibility to explore more ambitious plans down the road once you have a better understanding of the property's potential and your own budget constraints.Hope this helps clarify the options.