Insurance premiums and availability of coverage can get limited and expensive inside of those areas further compressing your cash flow. 

Likely will need an upgrade in the vacant unit at least.Financing & Numbers:Purchase price: $1.3M$600K down, financing $700K at 7% interestMonthly mortgage (P&I): $4,660Property taxes: $1,300Insurance: $250Maintenance/reserves: $250 (may need more due to the condition)Total expenses: ~$6,760/monthRental income: $5,000/monthOut-of-pocket cost to live there: $1,760/monthThought Process:I could gradually tackle repairs & renovations while keeping the units rented.Tenant turnover could allow for rent increases, but that’s uncertain with SF rent control.SF appreciation is solid long-term, but the building needs work.Alternative: Rent a 1BR in SF (~$3,200) and invest in a property elsewhere in NorCal, but I like the idea of locking in SF real estate now.Would love to hear thoughts—good long-term play or too risky with the maintenance issues?

@David YoungTo turn your paid-off home into a successful investment property, start by formalizing a lease agreement, assessing necessary renovations to maximize rental appeal, and calculating your cash flow after expenses.

I am estimating to generate $8k per month net profit, on the low end. 

We saw this area is a suburb to a major city has good connectivity to a major company hub, low crime and a serene place.

You will need to keep track of all expenses, repairs, capital improvements and finally claim depreciation during tax filing 🙂

One we have been looking at (because low start in cost) was purchasing and renting to section 8.

Industrial vacancy rates for your size building are ridiculously low. 

Quote from @Michael Calvey: Quote from @Bonnie Low: Following because I'm looking for the same thing.

Under New York law, landlords have 14 days after the tenant vacates the property to either return the full security deposit or provide an itemized statement indicating any deductions made from the deposit.If the landlord deducts any expenses from the security deposit, they must provide the tenant with an itemized list detailing each deduction and the corresponding cost.