Could really use some help, am I wrong?

[Brian Ellis]

Good afternoon everyone, My dilemma: Contemplating Purchasing first 2-family home. 3br lower 2br upper Pros: - Location, in the heart of town - Tenant paying $1500 for 3br and wants to stay (been there four years) - Water heaters, Furnaces newer with separate meters for each unit - Natural Gas - 2 Car garage - Corner Lot - .24 acres - Based in rentometer.com 3br rent for $1700 on average and 2br $1550 on average for its location - 3BR has one and half baths - Laundry hookups both units - FHA Loan, less down payment - Owner occupied (id live on the top floor while renovating) - Foundation is solid Cons: - 2BR needs a complete renovation to the studs - 3BR needs renovation but nothing right away (tenant is happy as of now) - Leak from fireplace/roof which is ongoing - Taxes are $4500 - Price listed at 360k - Comps have sold around 330k, but don't have the garage or location - No cash flow until I were to be done renovating and buy another - Some plumbing needed I got a CAP Rate at around 8.5% with it being sold at 360. I've looked at multis a couple towns over (terrible town and place to live) and they are selling anywhere from 220-300k, in just as bad of shape, with rent going for 1000$ for a 2br 1200$ for a 3br. What is your input? Am I wrong for thinking it would be a smart move? It's hard to come by multis like this in that part of town in a residential neighborhood. If I were it would take another 6 months and I'm not even gaurenteed to get one them.