If you have a large down payment (or the ability to cover negative cashflow), the East Bay's appreciation and principal pay-down benefits have been historically very strong compared to other markets.  

A vacant month, turnover costs, paying your PM to fill the unit. 

Las Vegans Paying Highest Income Percentage on Rent: Nearly 58.3% of renters in the Las Vegas area spend more than 30% of their income on rent, considered "housing-cost burdened."

Your local S8 Housing Commission should have an info sheet on their website that shows their deductions if landlord chooses not to include electric, gas & water.Even more critical, your $680 mortgage amount, that you appear to be comparing to the S8 rent, should include ALL the other housing ownership costs: property taxes, insurance, vacancy/tenant nonperformance (S8 tenant may have to pay part of rent), maintenance & miscellaneous.Suggest you use the BP Calculator for this.

The laws are not landlord friendly at all and it's common for landlords to get stuck with a non-paying tenant or squatter and have to legally keep paying the utilities, taxes, mortgage, etc. while the eviction gets delayed in court for months or years.

If the delay results in you not meeting the state deadline, then I suggest you make the PM pay for it or file a complaint against them with the state.Everything has an expected life span.

On a $200k loan you will pay $10K more per year in interest, or $850 more per month. 

Drug out the process so long I had to pay additional EMD to save the deal.

Long-term tenant that always pays on time.

Either I make a loss of $5000 deposit or pay extra $6300 to keep the same cashflow numbers in proforma the sales man showed me.I'll update my further experience here.