HELP- I don’t know if this a good deal. First time homebuyer. Duplex edition.

[Marlene Isma]

Hello! So my two sisters and I are wanting to start off our investment journey with a potential duplex in Orlando, Florida. It's a 5 bdrm- 3/2. & 2/2. It's going for 499k but The seller is willing to sell it to us for 455k. Which will probably make our mortgage a little over $3,100. The tenant's rents are currently going for $1800. My Realtor says this Property is A great investment which I believe however I just think it's too much money. The property has replaced their major issues last year, Such as roofing and HVAC but It's going to need a lot of cosmetic work. We only have enough money to pay for down payment and closing costs, but not so much rehab cost. We were hoping to pay little to no money down during the closing cost and potentially save the money for any rehab, but that doesn't look like it will happen. Interest rate are rising, and we were hoping to pay a little under 3000 to make a little profit off of the tenants. However, I'm not sure if purchasing this property will put us in the negative or in the positive. Also, we were looking to house and possibly do brrrr method but I don't know if this is a good deal. The Realtor also wants us to view the property while the inspector is viewing the property so that we can make our decision within the seven day timeframe. Any advice or suggestions is welcome! Thanks

[Bryce Jamison]

Is your realtor also a local investor? Do they think highly enough about the property that they would they buy it if you don't? Remember, Realtors only get paid if you close. Also remember that investors don't typically sell properties with good tenants, high profits, and no headaches. Why does the seller want to sell?

Since you don't have an emergency fund, I would stay away from this, or any other property for now. The law of the universe says if you buy a property with no extra money lot's of things will need fixed right away.

How long has the property been on the market? My understanding is Florida is seeing a significant price contraction partially from a return to normal demand post COVID, and because rising insurance costs are making people consider relocating and making new mortgages unaffordable.

I'd advise saving an emergency fund before doing anything else. I wouldn't be surprised to see asking prices come down in that time. I'd also think long and hard before partnering with family. If something goes wrong do you want to loose a family member over it and make Thanksgiving dinner awkward for the rest of your life?