Looking to buy first duplex/triplex/quadplex
Like the title says, I am looking to purchase my first duplex/triplex/quadplex. My thinking is because I do not have enough funds to purchase a pure positive cash flowing investment property I will purchase a multi family property (using 5% down), live in one unit for a year or so and eventually use the unit I was living in to generate cash flow on this property. But I have a few questions first...
1) When I am evaluating how much of a multi family property I can afford, how do the rents from current tenants in the property (with leases in place) factor into the purchase price/my income from a lenders perspective?
2) Should I strictly base the purchase price on the 2% rule? I'm finding this extremely difficult even with foreclosure listings.
3) When I look at a 2/1 duplex that is listed for $225,000, has taxes of 6,660, has both units rented for 950 and 850, I calculate my payments (taxes included) to be roughly 1,500 a month. Does this seem like a bad deal? How much would you pay for this property?
Thank you in advance.