It's all learning so this is great.As for closing costs, I put $1500 as that's what it recommends on the low side.Do you generally put 10% as a rule of thumb for Vacancy, R&M, CE, and PMFs?  

Everyone is so supportive and knowledgeable. 

Further, with the hot construction market, your bids will be almost assuredly be exorbitant.I think you already have the right thinking on renting the property out given Berkeley's insane rent control rules.

Next use the 70% rule to determine your allowable cost basis

You might be the exception to the rule, but there's always the question of whether you're leaving money on the table.Put it another way.  

I'd be surprised if there weren't a "grandfather clause" allowing you to change your occupancy rules without evicting the existing tenant.

Hi Jane,The rule of thumb, if you want to make money, is that you rent should be 1% of the purchase price.Meaning if you are buying 150K property you want to be able to rent it for $1500. 

I don't actually have much to contribute, mostly just wanted to lend some virtual support and empathize with how much this situation completely sucks.

Each bank will have different rules, since each bank manages their money slightly different, so do try to get 3 sets of numbers from 3 different lenders to compare.2. 

You can get exception if the property was recently acquired although this rule is going to change pretty soon.