First investment/ house hack..

[DJ Thompson]

Hello everyone,

So about three months ago I was out bid on a wonderful opportunity to house hack a two family in a very desirable town.  Since that fell through and I've been hunting around for awhile, I decided to try a different and smaller approach.  

By the end of this month I will be closing on my very first property! With that being said I think I came out with a great deal this time around.  It is a 1 bedroom, 1 bath appt that are currently being rented out for $1375 a unit (not including a garage.  Mine has an oversized 1 car garage with loft for storage)  

The figures break down as follows

Sale Price: $120k

Taxes: $3544

HOA: $235

Ins: $445 yr

30 yr fixed FHA at 3.875.

$4200 TOTAL down  (seller paid all closing costs)

Monthly mortgage is $1166 currently all in.

I purchased it off another investor who I knew in the area and he is retiring (88 years old, kids don't want the property). The property appraised for $139500. It doesn't need any work to be habitable however I plan on spending about $5000 to update the electric, paint, floors, kitchen and appliances. We plan on living in it for 2 years, refinancing it to drop the PMI and renting it out while we move onto another condo. The garage was rented out separate from the condo (the are detached) for $150 a month. I am 26, and my business partner is 23. We have considerable working income for our age (170k a yr combined so far) so we figure in 5 years we should be able to complete this 3 times over while still being able to cover expenses god forbid there is a lapse in rent.

Any other suggestions or ways I should be looking at this investment that I'm missing?

Thanks 

DJ