First duplex (house hacking) under contract but is this worth?

[Cecilia Constantine]

Hi BP fam,

My partner and I decided to take the plunge! I started looking for properties in Coral Springs, Lighthouse, Boca, basically looking for B neighborhoods not to far from work, using FHA. The thing is I've been consistently outbid by cash buyers overnight each time.

Found a place in Pompano off US-1, made an offer at the same time seller declines a 350k cash-offer on the 365k asking price. Did a walk through and I *me with my newfound skills* found signs of termite damage. Seller gets an inspection and starts making repairs asap, we think he's motivated to sell now but seeing other outdated comps we think the property will appraise at 340k and seller will come down.

Can someone with more experience in this small multi-family market give these numbers/scenario a quick run through?

Current Rent: 1100 one side month-to-month - market at 1400 - 1600 (agent tip)

Offered: 360k + closing credits

Down payment: 3.5%

Vacancy, CapExp and repairs estimation: 5%

Rehab Costs/ ARV: Pending inspection and appraisal, but right off the bat, both kitchens and one set of floors, small items need updating. I'm hoping to rehab our side, switch units, and repeat. Thinking to value add missing washer/dryer hookups to the other unit later.

Comps: 1 fully updated and spruced sold in last 6 months for close to 400k

Gross Income: 13.2k (if tenant stays), 16.8k (if tenant replaced + market rates), 36k (when all is updated and we move on)

Grateful for all advice and counsel.