I'm having a hard time finding a property that cash flows with an FHA loan. please help

[Kay H.]

Hi, 

I'm looking for a property to live in on an FHA loan and then rent out. I was looking for multifamilies, but now I'm even considering single families. I just want the property to cash flow. However, finding a home that I want to live in at a price point that cashflows is difficult. What can I do? Case in point: I like one home that costs 160,000. It would rent for about 12,241. However, when I calculate the mortgage payment with only 3.5% down, that's not cash flowing much at all.

What can I do? I can't really see myself living in an old 40,000.00 house in a rough neighborhood.