Hello,

Here is my situation. I just  became a real estate agent a few months ago. I also work a W-2 job that allows for a loan program. I will be leaving this job soon to focus on my realtor business. I've been holding onto my W-2 income simply for the allowance of getting a home loan and realize once I convert full time 1099 my chances of getting the loan decrease significantly. I want to take advantage of my financial history and climbing credit while I have it.

I have been aggressively searching for my first multi-family unit property and live in the Salt Lake City, Utah market. Being fairly new to

the real estate world and am trying to leverage my license on this first deal by using my commission for the down payment. I've wrote offer after offer and have been beat out by stronger offers. Most mutli-family units are under contract within a day or two here in this market, at either asking or over asking.

The good news, I finally won. I was able to lock down a duplex over the weekend. It's a 2 bed/ 1 bath side by side legal duplex. One unit is fully gutted and is under a full remodel while the other has a month to month lease that has been in place for 5 years at very low rent. We are wanting to house hack this first property by living in one side and renting out the other for 1 year per FHA owner occupancy rules. Then, move out and do it again.

The contract breakdown:

Sales Price $325,000

Duplex: 2 units (2 bed/1 bath) one side completely remodeled.

-Fenced in yard per unit, roof 5 years old, new water heaters within a few years

FHA 3.5% down (3% of that coming from sales commission)

Rents: Local rents vary from $900-$1200

Mortgage: $2050

I understand this deal will not produce that much cash flow in the short run (Once I convert more equity in the unit I can drop PMI to increase cash flow) Remember, this is my fist deal with little to no money in which doesn't produce a strong cash flow standpoint. What do you guys think about all this? Do you feel like it's a good first opportunity? Or is it to risky because it doesn't produce that much cash flow? I know there are other options like hard money and BRRRR. I want to use those next. I am just trying to take advantage from a first time homebuyer and house hacking.