I think the best place to start is to speak with your loan officer and find out the requirements for a loan in each scenario.? Knowing the loan requirements each scenario, should help make the decision more clear for you.
For example, how much do you have saved for a down payment?? The down payment requirements are different for owner-occupied properties and rental properties (since you won't be ready to transition to San Luis Obispo for another 3 years, buying there now would mean purchasing as a rental property in most cases).? On an owner occupied you may only need between 10% and 20% down, whereas on an investment property you may need 25% or more down.
Also ask your lender what are the debt to income ratios needed for loan approval.? Knowing this will allow you to see if your current income can support both a mortgage in San Luis Obispo and your rent in the Bay Area.? Generally, lenders will only give you credit for 75% of the gross rental income when calculating your debt ratio. It will be most important to know? that your income can support 2 housing payments for the next 3 years. What if the tenants don't pay? Do you have enough reserves to pay the mortgage if you can't collect the rent?
Also, you may want to take into consideration of the effort necessary to be long distance landlords.? Isn't about 200 miles between San Luis Obispo and San Francisco?? If your tenants call for repairs or other problems with the property, does your schedule allow you to travel to San Luis Obispo or would you need to factor in the expense of property management/maintenance fees?
Again, I think having a in depth conversation with your lender to get a clear picture of the financial considerations will help you make the best decision related to your goals.
I hope this helps and good luck!
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