Living in an renting out a duplex: several questions that might make it unworkable

[Anjolie Green]

Hi,

I'm looking to find a duplex that I can use to kick start my REI goals. I'd like to live in one side and rent out the other. With this in mind I've been evaluating FHA loans versus 5% down type loans. For houses in the $150K to $190K this has seemed very doable in terms of down payment/mortgage.

After looking at closing costs though I'm worried that the numbers may start to fall apart. I've seen estimations of CC's being int he 3% - 6% range of total price? That makes the CC's more than my down payment...

Can someone shed some light on this for please? I'm just getting started and trying to get a handle on how it all works.

If you need a hypothetical example to work from how about:

$190,000 asking price

$7,000 FHA down payment or $9,500 at 5% down payment.

What do the final purchase and monthly payments numbers shake out to from a scenario like this?