Deciding if this is a good deal
So I am looking for my first property and I have done a good bit of research and decided that going with an owner occupied duplex is a great way to start. I have found a place that seems interesting for my first property. It is listed at $160k, rent (from both sides) is $1510, $775 and $735. As I understand it, I should look at a duplex as if I were renting both sides to determine if it is a good buy or not. It also states that the rent is under market for both of them, however, I am not sure how to really find out what their value would be. With my PMI being around $1160, vacancy (10%) $151 and repairs (5%), that is a total of $1386 per month. Cash flow with those numbers is $227 and cap rate is at 6.4%. Do you think this is a good deal? What would be a good price to get this house to make it a good/great deal? Any input is appreciated. Thanks!
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If you are occupying one part of the duplex, you only count one rent. Do you know what the leases are like? If they are on long term leases, you won't be able to occupy it until you can get someone to move out. That would dictate the type of financing you will get if you can't occupy it within a certain period of time.