First time Owner occupied duplex
Hi everyone. So I close on a duplex (I'll be occupying one side) next week in a nice neighborhood where I live here in Wisconsin. I feel like I got a pretty solid deal on this property considering the market. Each side has 3 bedrooms, 1.5 bathrooms, single attached garage, private deck, central air, etc. the place needs nothing and is approximately 1300sq ft per side. Unfortunately, due to my "lack of credit" I kinda had to go through some hoops to get financing and ended up finding a lender that would do an FHA loan. The cost of the property is 192,000.00 And I'm putting approximately 10% down. Since I didn't go with a conventional home loan (20% down) I will have to carry that additional PMI insurance. My approximate monthly payments will be around 1600.00. The current tenant is only paying 750.00/month. His lease is up at the end of August. Ive compared this property with other comparable places in the area and figured 950.00/month would be appropriate. Would you give the current tenant a 30 day notice right away since his lease expires at the end of August? Or would you give 60 days since its quite a bit more money? Also, would you require a year lease right away if they agree to the rent increase? Thanks in advance! I hope someone can relate!