That actually doesn't seem so bad to me. Apparently in SF, you can get an "emotional needs" dog, as opposed to a "service" dog. It does seem like something of a technicality with the building manager at this point, so if you can get it to work and are willing to pay $50 extra / month, you have my blessing.
I think it's a good idea to go visit some puppies IRL... as others have said, be very careful not to get too attached to one and buy from a pet store! Make SURE to get one from a good breeder, good rescue, or good re-home.
You should like you are really thinking this through, so I do hope it works out for you.