To calculate the purchase price of the duplex, you can use the formula: Purchase Price = Net Operating Income (NOI) / Capitalization Rate (Cap Rate).

For example, if the NOI is $16,800 and the Cap Rate is 6% (0.06), the calculation would be:

Purchase Price = $16,800 / 0.06 ≈ $280,000.

So, the estimated purchase price of the duplex would be approximately $280,000.

Now that you have calculated a great offer and the seller has accepted, you can begin to apply for a FHA loan. The down payment for an FHA loan is typically a percentage of the purchase price. The minimum down payment required for an FHA loan is 3.5% of the purchase price. Based on the 3.5% minimum requirement, you can estimate the down payment amount by multiplying 3.5% by the purchase price of the property. For example, if the purchase price is $280,000 (as calculated in the previous answer), the down payment would be approximately:

Down Payment = 3.5% of $280,000 ≈ 0.035 * $280,000 ≈ $9,800.

Lastly to determine your monthly mortgage, we would need a bit more information. The mortgage payment depends on factors such as the loan term (number of years), interest rate, and whether you pay private mortgage insurance (PMI) or not.

As an estimate, let’s assume the following:

Loan Term: 30 years

Interest Rate: 4% (This can vary depending on your credit score and market conditions)

Private Mortgage Insurance (PMI): Included (if your down payment is less than 20% of the purchase price)

Using these assumptions, you can use a mortgage calculator or formula to calculate the monthly mortgage payment. For a $280,000 loan (purchase price - down payment), with a 4% interest rate and a 30-year loan term, the estimated monthly mortgage payment would be approximately:

Monthly Mortgage Payment ≈ $1,335


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