Is this a good deal? Houston House-Hacking a 2/2 Duplex Help!

[Tim Shin]

Hi All,

My wife and I are going to see several duplexes in near Emancipation Park and TSU in an area that is being developed.

There are duplexes that don't seem to need much help besides a kitchen renovation and some added A/C. I estimate costs of repairs and renovation to be $20-30k. If we buy, this would be our first house purchase. We more than well qualify for an FHA loan and are pre-qualifying right now.

Please help me figure out if this is a good deal for house hacking, owner-occupying for a couple of years then moving out to cash-flow positive. What are things to be looking out for when I go look at these places on Saturday? 

2/2 duplex, built in 1944

Asking Price: $290,000

Estimated Repairs: $20-$30,000k.

Rent rate after repairs: $1500

Current rents: $975

Down-payment at 3.5%: ? at $290k it's $10150

CMA by my agent I believe at $290k:
$1,386 Mortgage (3.5% down, 30 yr loan, 4% APR). How do I factor in PMI?
$ 300 Taxes (2014 HCAD appraised value at 2.66% taxable rate)
$ 200 Insurance (Estimated).

Elementary is a 6 on GreatSchools.

What do you think I should assume for maintenance, vacancy, and capex? Anyone have experience here? How do I determine the costs of monthly expenses beyond this?

Thanks! First post asking for help!

Cheers,

Tim

[Tom Smith]

The asking price seems high for the needed repair costs but I think its a good house hack!

Maintenance 5%. Vacancy 7%.

I am also "house hacking".  I bought my duplex for $230k two years ago (now worth $275k) and I'm getting $1,200 rent (2 bed / 1 bath).

I don't know your area but I'm following your topic because I'm very interested in hearing input from others.