21 year old looking to my first property (Duplex)

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Hello! Discovered bigger pockets a few months ago and I'm learning a ton. This is my first post on the forum, and hopefully some of you with more experience could take a look at the numbers of the duplex I'm looking at in Lexington, KY. The duplex is $164,500 and is one-story with 2 identical units. It's in a decent suburban area in Lexington and sits on a street with single-family homes, so the street is well kept. The inside has been updated within the past 5 years. One unit is occupied renting at $750 a month (which I feel like could really be $900) and the other is vacant. My goal for this would be for my wife and I to move into the vacant unit, saving us our current apartment rent of $1,090. This would allow us to get an FHA loan, which is ideal because, at 21, our current ability to pay a down payment is limited to about $15,000. From my calculation, the mortgage would be $700, taxes $115, utilities $100 (for our side) and general expenses $100. This is $1,015 per month minus rent income of $750, so our out-of-pocket would be $250-300 a month, saving us a lot from paying $1,090 and also at the same time gaining small amounts of equity in the property. Is my analysis on this correct? Am I forgetting anything?


@Avery Evans

I’ve looked at the same duplex in Lexington I believe and I think it makes a ton of sense for you. My guess is you’re estimating a little low on utilities though. You can ask for copies of utility bills if you want to really know how much it’ll cost. And keep in mind your inspection might reveal one or two things that need to be fixed right away, so I’d just make sure you some some reserves or some way of coming up with a little cash if something breaks.

Good luck!