How to know a duplex is a good deal?

[Daniel Okon]

I am starting looking at duplexes and I am just not finding very good value especially because I am planning on doing the FHA 3.5% down and live there for a year starting out. I have found many duplexes that are around the 220,000-275,000 range that are only charging rent at the rate of 950-1250 per month on one side. I really was hoping to find a property that could essentially take care of the mortgage costs plus maybe a bit of the utility costs as well as some taxes as well. Is this a little too optimistic? In reality I've only been looking for the past couple weeks but is this something I should be looking off of mls? Any advice is recommended. I am out of the Minneapolis/St. Paul in Minnesota.

[Larry K.]

You may want to start looking in other areas. Start from the questionable urban centers and work your way out to the suburbs. Somewhere along that geography you will probably find a transitional area where the rent to price ratios are closer/better and you are still comfortable living there. 

Living in it is a great idea. You can do this repeatedly and end up owning several as years go on.