Is it worth it? First property

2 Replies

First let me start by apologizing if I leave out any critical info. 

The property is a duplex, 3 br top and 3 br bottom. Tenant occupies lower unit and has been there 10+ years with perfect rental history 

Top unit all redone except needs modern windows in a couple rooms. 100+ year old building. 

Quals for FHA.

 The house is valued at 106,000, the seller asked 125, I offered 120 (basically to hold a spot and get some advice). 6% closing costs to me. 

Tenant pays 825, heat and hot water included (will be raised). and i know when I move out, I can get 1000+ for the upstairs. 

I honestly don't plan to sell, so the value of the home would be just for refinance purposes, correct? 

To me, the numbers add up in the long run, but I wanna know if I'm skipping something. 

Taxes/Insurance? Does the downstairs unit need any renovations?

Sounds like a great deal to me.

@derek e taxes are around 4300 /yr.   since I'm going fha my mortgage will be 1100 /mo 

No renovations are needed, however I'd like to eventually get the downstairs as show worthy as the upper unit. Not a concern right now though. 

If my numbers are right, this should cash flow about 700 /mo when we move out and rent the upper unit 

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