Househacking duplex make sense?

[Tammy Mason]

Hi BP community,

I’m currently in contract with a duplex that I plan to house back. It’s in a great location and near family. Rent will cover about half the house payment. Definitely not a lot opportunity like this here.

However, insurance won’t cover because it has knob and tube, so electrical needs to be rewired. Both Furnaces need to be replaced, and the roof, while good condition, is 30 years old.

Homes are really old here, so it’s not uncommon to have these issues. But it’s not common to have all 3 at same time. So only good thing here is we start with fresh system. Bad thing is this is a huge upfront cost. 

The only other option I am considering is renting as typical SFH are north of $1m. What are your thoughts?