Should I consider owner-occupied duplex with little cashflow?

[Jessie Niu]

A newbie's dilemma: I am looking for an owner-occupied duplex, but the ones in the area that’s suitable for us to live are just not producing enough cashflows (the mortgage is a lot higher etc). The # on cheaper ones make so much more sense, but I don’t want to live in those areas. I feel that I am over-paying for owner-occupied duplex for the investment purpose, yes I can live on one side and have part of my living cost paid by the tenant, but what happens after I move out?

I did deal analysis at BP, only less than $100 positive cashflow, cap rate 5.3%, the rent definitely doesn’t meet the 2% rule, actually only 0.95%. I can get the same rent with a duplex that’s almost 50~60k less, but the area is not as decent. Should I make compromise due to owner-occupancy?