Hey how is everybody doing!!! I hope great!!! Well im finally getting into real state investment specifically rental properties. Im looking at this duplex close to where im renting now, is a 2/1 on both sides. There is an older tenant on the one side and her $900 rent payments come straight from her social security. We are going to house hack if we do decided to go with it. They are asking $229,000 and the owner is putting in a new roof along with paying the closing costs. All we need is the 3.5% down with the fha loan. Mortgage should be around $1600 to $1700. What are you guys thoughts?
This is very similar to what I do, although the prices here in the Tacoma WA area are a lot higher for the property and the rents are not much different. I would go for it if the inspection goes well.
What I also like to do though is do an area check for rents. If there are similar 2/1 units around and the rents are higher, great if they are lower then it could take a deeper look. I am guessing the next step at some point in the future is to move into the next duplex and rent out both sides of this first one. If your mortgage is 1700 and you can only get 900 each side then there isn't much cash flow once both sides are rented. If rents for similar places are in the 1000-1100 range then it starts to look a lot better.