Six figure income is still impressive for any residential SFR..optimally rates improve and so will rates of return with a refinance.

California is just not affordable for us, but we still loved living here.

It was off market, I paid a local bird dog $20k for helping to get it to the close and even including that $20k at market rate it met the 1% rule.Today my underwriting would not have a 1% ratio with 80% LTV as positive cash flow in class C.  

I'm analyzing properties in my expensive market which has a dire need for affordable housing.

For example do you have a great w2 and can you afford to cover costs of a major repair or 3 months of vacancy?

Once you have a good understanding of what you can afford, reach out to your landlord in a friendly and casual way.

We aren't the cheapest place but we are affordable for the size and I want to keep it that way.

You could also get a line of credit for about $150k (you should be able to borrow 75% of the value.)The reason I suggest this is…1) you save $40-$60k in selling costs. 2) you have a lower blended interest rate (2/3rds at 3.25% and 1/3rd at 7 or 8% instead of the whole $500k at 7 or 8%) saving you another $1k/mo in interest. 3) you only pay interest on that $150k when you actually use it, not from day 1  Unless you hate this property, or want to buy something you can’t afford without selling, that would be my plan.

Yes, that means he will have to give up his 3.5% rate (or whatever it is assuming lower then today rates) but it is what it is. 

For an example, we Googled, "hourly rate for handyman Austin, TX" and got this:AI Overview: As of January 2025, the average hourly rate for a handyman in Austin, Texas is between $25 and $25.28.