Buy out-of-area rental since can't qualify for home near my biz?

[Eliza B.]

Hello!

Could you offer some advice?

I was just approved for a $250,000 mortgage as I am a small business owner and write off most of my income. My business is in LA county and, obviously, $250k will buy me nothing to personally live in unless I want to commute about 2 hours to where my business is located. We currently rent a decent house for $2500 per month (very decent rent price for this area!), but we'll never be approved for a large enough loan to purchase the houses around here which are $550k+ to live in a "safer" neighborhood. 

So, I'm thinking of buying a duplex about 2 hours from my business for around $220k, and then renting both units out with a little cash flow to start having an investment business on the side. I could even live in one of the units, eventually, once I'm able to bring more of my business online and I wouldn't need to maintain an office out here in LA. I like the neighborhood and area where the duplexes are located, and I can imagine myself possibly living there in the future.

Is this a decent idea? Or, terrible idea? One of the properties already has a renter paying $800 a month for one of its 2 units; and my mortgage, taxes, etc. come to around $1250 a month. The back house can rent for $800-$1000 per month, when I compared what other units in the area with the same specs are renting for. I could be short $450 for a month or two until I rent out the back unit (I have savings I could cover the rest of the mortgage with), but after the back one is rented I could have a little cash flow- at least enough to save for upcoming repairs, etc. I'm guessing.

I also thought this could be a good compromise since if I ever needed to, I could live in one of the units and commute the 2 hours to my office a couple of days a week to maintain some of the income I make locally out here, if I needed to do so.

Any advice about this idea? Or, any resources you can point me to: books, etc. to learn more specifics about going into a rental investment like this?

Thanks so much,

Eliza