Live in one unit, let the rents pay most of your mortgage. It's the most under-used wealth move in the East Bay - and FHA makes it possible with 3.5% down.
FHA lets you buy a 2-, 3-, or 4-unit property with 3.5% down as long as you live in one unit for at least a year. The other units' rent offsets your payment - and here's the part that surprises everyone: a portion of the other units' market rent can count as income to help you qualify, so the building helps buy itself. FHA loan limits are also higher for multi-unit properties, which matters at Bay Area prices.
On 3-4 unit properties there's an extra hurdle called the self-sufficiency test - a portion of the building's total market rents has to cover the full payment. It kills a lot of deals in high-price areas, which is why duplexes are often the sweet spot here, and why I run the test before you write an offer, not after.
A year later, you can move out, keep the building as a rental, and do it again - or move up using buy-before-you-sell. My client Pablo is building exactly this kind of plan around a fourplex right now - rents counting toward qualifying, payment strategy mapped, offer-ready. If you want the same roadmap, book a free strategy call and bring me a listing - I'll run the real numbers on it.