NorCal Bay Area- Starting out buying a duplex for owner-occu

[Tom Kn]

I'm 25 and entering the market as an investor and as a first time home buyer. In my market, positive cash flow on multi-family 1-4 units requires significant $ down. I'm considering buying a duplex, triplex or four-plex and live in one unit and rent the others. I'm still researching and crunching numbers. Does it ever make sense to buy a property with negative cash flow? I don't expect much appreciation over the next five years.

Hypothetical scenario:

Duplex-
price:$450,000
unit-1:$1,200 per month
unit-2:owner occupied
down:$90,000 (20%)
mortgage:~$370,000 5.75%, 30YRS, FIXED
Monthly Payments:$2,160
Monthly expenses:$573

Total mo. cost: $2,160-$1,200+573=$1,533

Principal and tax savings: $975

Net mo. cost: $558

Does this make sense to you guys?

Also, do you recommend starting out in duplexes as owner occupied?