Question on a No Money Down Househack
I've already made an offer on this property, but was curious what some others thought about it.
I'm utilizing a VA loan to do zero down on a $600,000 duplex in one of the wealthiest suburbs of the Twin Cities. Median home price in the area is in the mid $900,000's. I'm fortunate to have a pretty high-paying job which is why we're able to qualify for a loan of this size.
3 bedroom, 2 bathroom units, rent for $2500/month each.
While living there, we'd be paying about $500 a month with one side rented, which is a lot better than the $2062 we pay on our primary residence we'd be selling to make this happen. Once we moved out, it would be cashflowing about $1300/month, with no money down besides some repairs and closing costs. A cash on cash return of 322% is pretty hard to not want to take a risk on.
My question is, do you think $600,000 is too much debt to take on, or does the desirable area and high rents make it worthwhile?