FHA Flea 4 family For First Property?

[Michael Crawford]

Background:

I found a 4 family in a small town.

The current buying price is 188k, with the seller paying 2k at closing.

I will be bringing about 14k cash to close and a 2.75% interest rate.

The Rent is $2300/mo

Insurance is about 1800/yr. 150/mo

Taxes is about 2000/yr. 166/mo

PMI is 130/mo

Principal and Interest would be 740/mo

I assume that 500/mo will go to maintenance and repairs, Including initial flea treatment

Water sewer trash is 200

I have a cashflow of a bit over 7k after I move out.

I made a couple assumptions because it is in a rural area: the home value and rental appreciation rates will be slower (1%) ,but the expenses will remain the same (3%)

I also estimated a 10% vacancy, which I think is quite conservative considering it's a 4 family.

I understand that I am not buying the house for a huge discount, BUT, it allows me to live for free while I stay there and is one of the very few houses I found that cashflows decently when I move out.

My current plan is to hold it for as long as I possibly can, potentially refinance to get rid of the PMI.

However, if the expenses are actually going up faster than the rent, the value of the property may drastically decrease over time?

This has been somewhat of a ramble, but i would appreciate any thoughts/criticisms/recommendations on my strategy.