west san jose duplex. breakeven cash flow, but worth it?
recently sold our first home. and considering now investing in multi home somewhere around south bay area. we have found one duplex in west san jose area and we didn't buy, but definitely considered. it was sold for 1.05K at the end. 2 units. in case there's something similar deal, I can share my spreadsheet. but important numbers are like..
downpayment 500K
loan 550K
interest rate: 4%
rental $4700
total expenses including tax - $1955
after all, cash flow is -$115.
we have 1 mil in cash, and 800K loan would be doable. how would you invest with that money?
1. condo in palo alto?
2. 3 bed house in sunnyvale, mountain view, los gatos, etc?
3. 2 duplex in san jose, and another rental for our family where school is good. And let 2 duplex build equity by themselves?
4. 1 duplex in san jose for rental, and 1 house at san jose cambrian area for our family?
5. anything else?
We were getting convinced that we will buy one duplex at least, but after we running those numbers, I would like to question and hear you REI gurus from this area. Thank you!