Buying an FHA multi-family that doesn't cash flow? (SFla)
I live in north Broward County but work near the Miami airport, so the commute is starting to wear on me. I currently rent a 1/1 and pay below market rent for my area (about $900), but I'm spending nearly $300/month in gas and tolls. I was considering buying an an duplex, triplex, or fourplex with FHA financing somewhere in South Broward near the turnpike. However, as the market down here is overheated, I'm starting to wonder if this is a good idea.
I recently came across a duplex in Hollywood with an asking price of $375k. If I put down 3.5%, my total payment (P&I, taxes, insurance, PMI) would be about $2,700. The larger unit will rent for about $2000/month. The property doesn't come close to cashflowing, but the negative cash flow is still less than I pay in rent and it would cut my commute in half and give me some tax benefits.
Your thoughts?