Advice on First Purchase

[Amy Foley]

Hi all, I'm new to the community and looking at purchasing my first duplex property. I'm questioning my numbers as some of the actual costs are coming back higher than my estimates. Closing costs and Insurance, for example. I'm also seeing slightly higher interest rates than expected. All of this has reduced my estimated cashflow to just over $100 per unit and about 5% CoC Return. This is down from original estimates of $200 per unit and 8% return which seemed reasonable for the first attempt at this.

I'm planning on house-hacking with this property and then eventually renting out both units and repeating the process. My overall expenses would decrease from my current SFH, but I want to make sure this is something that will be worthwhile to hold and rent out in the future.

Any feedback on whether or not to move forward?  Anything else I should be considering here?

Thanks in advance for the help - this forum has already been an incredible resource!

[Erik Nick]

It depends on your goals. If you want to lower your housing expense immediately, then this would be a way to go, but if you expected a higher COC, then there's no shame in backing out either. There's definitely no reason to force a deal, but if the numbers work for you, then that's all that matters. One thing I like to keep in mind is that there are an abundance of deals out there, i just have to find them and not limit myself.