Help! I need advice for buying the multifamily home I live in.

[Jason Behn]

Hello good people of BP,

I am in a bit of a unique situation. I have been living on one side of a MF(duplex) property for the last few years an recently my landlord has put it on the market. He is out of state, retiring and wants to get rid of the property. I have expressed interest in buying the property he is asking 309k. Current rents are around 1130 on each side (100-200 lower than market) which reflect the current condition as there haven't been many modifications since it was built in the 70s. My plan is to take advantage of an FHA with a 203f to fix it up as it could use some work. ie. Foundation which was quoted at 6k, a/c duct work, fence work, and any potential plumbing issues that may result from the foundation repair. With the remaining funds i would make some basic cosmetic improvements to the side I currently live in such as flooring, paint, etc. Shortly after that is complete flip sides with the neighbors and raise rent should they agree to a higher rate or get new tenants at a higher rate to reflect the upgrades. I am confident based on comps on the street I could bump up rent to 1500-1600. Then do the same on the other side while living in it and eventually take out an equity loan and move onto another property once the Duplex is cash-flowing. My question is does this sound like a smart approach? My current to do list is get the property inspected and find an investment friendly realtor to help me. If there are any agents in the Austin, TX area that could help I would be very appreciative. Also, any input you guys could give would be helpful. BP has been a great place to get input so any info would be helpful. Anything I'm missing? The loan would be a 30yr fixed at 3%. Sorry for the novel, but I just wanted to provide as much pertinent info as possible. He as already had a few offers all lower than asking. I'm excited for this opportunity and would like to make it happen. Thanks so much!

Jason