Looking To Purchase Duplex- Need Help Analyzing This Deal!

[Winston Spence]

Hello,

I'm looking to purchase my first duplex with FHA financing. I just want to make sure this is potentially a good deal before going all in. The property is:

Sqft: Over 1,700

List Price: $56,000

Potential (Hopefully) Purchase Price: $50,000

FHA Downpayment: $5,000

Bed/Bath: 2 bed, 1 bath on each floor

Property Taxes: $1,900

Potential Rent: $600

Potential Insurance: $1,400

Maintenance- $1,000 hopefully, not much land

Since the loan is FHA, I understand that I have to live in the first floor. I never owned a home before so I have nothing but a guess on how much the water and electricity will be. Hopefully, I can get the tenant to pay their share of the water and electricity bill. Is this a good deal? Would I be able to live in this property and cash flow or at least break even? If you have any suggestions let me know, all help is greatly appreciated!

[Dawn Anastasi]

@Winston Spence

can you check with your local energy company to find out what bills are for that property? In some areas they will give out that information.

Is the water and electric/gas separately metered? If yes, then you just have them put their own bill into their own name. If the water isn't separately metered, then include the average water bill per month (some bill by the quarter) to the regular monthly rent.

Have you checked out rental prices in your area?

I haven't heard that for FHA you have to live on the first floor, versus just occupying any one unit. Can you confirm that?