Need help analyzing deal Tampa/Clearwater - BRRRR? Duplex

[Holly Yankus]

Very close to making our first plunge into REI with a duplex in Clearwater, FL. We are doing an FHA loan since we don't have enough cash for 20% down; and therefore, will have to live in one side of the unit for the first year. Occupying one side will make cash flow very tight for the first year. I plugged rent numbers for 2nd year and beyond in the deal analysis calculator. Let me know what you guys think please. Anyone else buy houses with loans that require intent to live for at least 1yr? Husband and I have different opinions on whether or not this is a good deal.

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Purchase Price: 195k

Estimated immediate repairs: 3k (both units are livable and in fair condition - 3k would be for more durable flooring - no immeidate major repairs - roof is new)

Estimated total rent (both units): $1800/mo

PM Fee: $180/mo

Estimated mortgage (30yr) w/ 3.25 interest rate: $1384

Some numbers from the Deal Calculator: 

Monthly Cashflow: $426

NOI: $15,120

Cash on Cash ROI: 28.40%

Income-Expense Ratio: .86%

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[Abel Curiel]

I would advise against using a PM in the beginning. If you and your husband are looking at REI long term (and I'll assume you are), the PM experience could be handy moving forward. Even if you decide to hire a PM after year 1, having that year of experience could really help you when choosing a good PM moving forward.
As for the deal itself, seems like negative cash flow. I would run the numbers again at different asking prices to find a better fit. If only 3K is needed for rehab, there might not be much value add opportunity here.
I love the house hack strategy and this particular deal could still work but the price doesn't seem to work. Find a number that works for you and dont be afraid to walk away!

Best of luck to you!

-Abel