Deciding between 2 deals in Louisville

[Paul Allen]

Ok need a little help, I have read the "ultimate beginners guide" but i'm still unclear on a few things. I am looking at buying my first multi family property and becoming a landlord in the Louisville Ky area. I will be using an FHA loan and living in one of the units.

The first property is in a B neighborhood listed for $250K and is a triplex Renovated 3-plex is fully leased at $2235/month. All have equipped kitchens (stove, ref, dw), wood floors and carpeted bedrooms. #1-$775 (2BR + office), #2-$885 (3BR), #3-$575 for a unique 1 bedroom. Off street parking. Recent upgrades for unique spaces and location. Some hookups #1 and #2. In this listing I would probably take the 2 bedroom to live in (wife and I) so that is $775 lost. Total rent potential $1460 and if I figured the mortgage right it would be approx $1400. 

the 2nd place is a duplex in an A neightborhood. A duplex with a studio (one-room apartment, currently rented for $500/mon) in front and a rear 2-story unit that has 5 rooms (not sure if this is bedrooms or just rooms total) plus the full bathroom in the "camel-back" rear. So at first glance it seems the rear is maybe a 2 bedroom hard to figure what income would be on this one but I like the area. It has a lower cost but from outside pics it may not be as well maintained.

Any input on these would be appreciated. 

[Chris P.]

Paul,

Your best bet is to look at what will create the most benefit for you in the long run, that you can afford at the moment. From the two deals you are looking at, I would go with number 1 if these are your only choices. Basically, you would be living for free, with the exception of utilities and upkeep costs. If each unit is individually metered, I would go with that as long as the analysis and numbers work out. I have learned not to fudge the numbers, so get as close as you can. Message me if you need any additional information, or help with the analysis.