Hello BP Community. I am completely new to the Real Estate Investing. I would like your opinion on a Duplex property I am considering. Both units are 2BR/2BA in a well established area. The units are each 1228 sqft. The orginal asking price was $225k and I was able to negotiate to $210K. I plan on living in one unit and the other unit is currently rented at 970.00 per month. At 3.5% percent down with a FHA loan is it worth the risk?
Assuming the condition is "move-in ready" and you won't have substantial acquisition/rehab costs, it really depends on what your real estate taxes are and what market rent is for a comparable unit. IF taxes are $4000'ish, your payment on this property will be $1750'ish making your portion after rent = $750'ish. If that's a good value , then it's a good move. You'll have lots of nice tax breaks which depending on your income situation should drive that $750/mo payment down under $500 when factoring in principal reduction on the loan. Buying a live in duplext is a great way to start.
Thanks for the advice. I have a home and pest inspection on the property in a few days. So I will see how that will turn out.