Hello All,

My wife and I have been actively working with our agent to find a small MF property (<4 doors) to live in as first time home buyers in Austin, TX. We came across a potential value add duplex (built in mid-70s, and outdated) and I am looking for tips/advice/recommendations for this potential opportunity. Heres the details...

- Side A (2/1) is unoccupied and in need of significant updating, including completely redone kitchen, bath, bedrooms, new windows, doors, flooring, remove popcorn ceiling, etc in order to bring to date/be live-able by my wife's standards. 

- Side B (3/1) rents currently at $1k/mo (lease ends in March), which is $200-$300 below market rent for the area. B is in nicer condition, not much needed in kitchen, but needs updated bedrooms, bath, remove popcorn ceiling, etc. 

- Roof is 16 years old, HVAC looks to be old as well (pre-inspection). 

* List Price: ~$335k (~$162/sqft, average price in area for outdated duplexes, per comps)

* Class 5 Remodel Estimate: ~$40k (We will be doing most of the work, with the exception of a few things to be hired out)

* Current Sales Price of Remodeled Duplexes in Area: ~$205/sqft (potential sales price of ~$423k, without including appreciation)

I plan to sell the remodeled duplex 1-2 years later, potentially making a small profit, and living with a reduced mortgage payment. This would essentially be a live in flip/house hack. Also, my wife will be an agent by then, and would be the listing agent for the property. 

My Question(s): Would pursuing the above make sense financially for us? What am I missing here? Is this a go/no-go for a first time home buyers? 

Thanks for the advice!