Looking at First Investment Property -

[Michael Reese]

Alright, so my realtor and I found a decent enough place.  Its a duplex with 6bedrooms and 4 baths.

Sticker price is 225k (which is scary for me)

One side has tenet that has lived there for 9yrs and is currently at $929 a month and Ill live in the other side and rent my current house out.

We will be doing a 3.5% down with a 30yr note.

My lendor said in closing we could negotiate that the other sides rent needs increased prior to closing (market says it should rent between $11-$1200 and I was thinking of just bumping her up to 1k and in a year rent out the other side for $1200.  My payment would be 1600 a month on this place including insurance, taxes and pmi - i would potentially clear almost 600 a month

Im a little unsure of this one considering the price.  If for whatever reason one side ends up vacant and my former house ends up vacant Id be looking at an expense of $2300 till I got some tenets in.  

I roughly make 55k a year and have about 20k in savings (minus 7k for the down-payment)

Would/does this seem like a smart move acquiring this place?