Need advice! Negative cash flowing property
Hello everyone!
I am trying to buy my first real estate investing property. I am under contract for a property at $389k, I will be using an FHA loan with 3.5% down payment. This is a 3 unit building with tenants on the top and basement floors, I would live in the middle unit. The building has not been updated for some time. The rents are currently below market value and would only cover $2400 of the potential $3370 mortgage. My intention is to house hack but I would have to cover the difference in the mortgage which is around $1100. My realtor is pushing that this is a good investment and the building is good, but I'm not sure it aligns with my financial goals. Should I invest in this property if there is no cash flow? I would have to renovate the bathroom in my unit, add AC units, new paint, and a stackable washer and dryer. The other two units need to be renovated, however the tenants are long-term and on month to month rental payments.
Any and all advice would be great! I am worried that there will be no cash flow on the property and I won't be able to save up for my second investment property. Is it smart to invest if there is no cash flow?
Thanks!