I'm not that familiar with conversion plans, but I think the sponsor might have to sell units as they become vacant or within a certain timeframe.

It is definetely making my numbers lower (sometimes negative in the first year) than I expected, as I'm mostly looking in Oaklamd County, which has the highest taxes in the state.

Your risk is actually much lower in a 3 or 4 unit than it is in a condo, and the potential to save on expenses goes up exponentially as you buy more. 

Your insurance will also be a lot lower because you're only insuring the space between the walls.The downside is that if the association is bad, then the building could be left to fall apart, and then you'll have a huge assessment for major repairs when they can no longer be ignored. 

If you're cousin will be living in SD, purchasing a home in the Coachella Valley area as a second home (from a mortgage perspective) will enable you to put less down, and get a slightly lower interest rate. 

@Denise MunozI almost stopped reading when I saw it wasn't,  the 1% rule.......If they are selling for $84,500....the gross rent needs to be $845/mo minimum.....Check the real comps for the area....as opposed to what may be on Zillow and see if you can get them to lower the price.......If you inherit long term tenants there and you try to immediately raise their rents by 12 to 13% then you have a decent likelihood of making them become bad tenants.  

Often a PM is able to get higher rents and lower vacancy, evening out their cost anyway. 

Austin’s lack of housing choices disadvantages first-time homebuyers, families with children, and middle and lower-income buyers.

I've moved tenants out for multi-week timeframes in the past and summer has been virtually impossible to find long-term stay hotel rooms or short term rentals - too much demand from the vacation folks.I'm closing a ready-to-go vacant rental in 30 days I'd offer you, but sounds like the timing's not gonna work there. 

Perhaps it's a lower base salary, but you're able to earn commissions?