@Dhwani Shah You should probably break down the calculation and list out the expenses you factored.

Payments that you make normally fall into one of 3 buckets100% of the payment can be factored in somewhere on the returnPartial payment can be factored somewhere on the return0% of the payment can be factored in somewhere on the returnHouse-hacking also has considerable tax implications in the event that you want to sell this property.You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion

@Cassandra Alessio I would say California money is definitely a factor.

And vacancy is non-factor as we are running our numbers off of gross rental income so vacancy doesn't factor in.

I'm a young guy (not letting age become a factor) who's looking for his first deal.

A few months ago I invested $850 for a 1000 strong mailing list with careful demographic targeting for years in residence, SFH home type, amount of equity in the home, and correlated with an increase of crime in the area (as crime is usually a major factor in getting people ready to sell and move). 

Check with your agent and/or shop for the pricing of that new policy to factor that into your calculations

A key factor for him was having the ability to close on it and delay our possession for a couple months to give his family time to finish school and get ready for the move.

There are so many other factors not mentioned here that other more experienced investors talk about like the experience you get from buying a rental, managing one (or finding a good manager), or running a rehab if you need to.

@Raymond Bachmann,There are a lot of different factors and numbers that you need to take into account with this decision.