First Time Multi-Family Home Buyer Anxiety

[Ron Ha]

This potential purchase would be my first foray into buying a multi-family and becoming a landlord. 

The property is zoned as a duplex but has three separate units. 

1st Level: 4BD/1BA

2nd Level: 2BD + Den (used as BD)/1BA

3rd Level: 2BD/1BA

In my market, I could get approximately $2900 for the 1st level; $2500 for the 2nd; and $1900 for the 3rd. Because I will be financing through FHA, I will live in the 3rd level with a roommate. (could get $1000 from roommate)

With the FHA insurance, my mortgage would be $4800. With the middle two units, I would be able to cover the mortgage. The property was built in the early 1900s, but looks to be in decent shape. We'll see what the inspection reveals. There aren't too many comparable units in my area. The others are nicer but go for seven figures. This one doesn't market well, is very close to the freeway, and currently has college tenants living on below market leases and on nine different lease. So I would need to go in a raise rents; leases will expire in the same month of closing. I would have to give 60-day notice of rent increase. Also, I would not do leases by room, but instead separate leases for each respective unit so I would only have two, or, at the most, three leases.

I'm looking for any thoughts you may have on what I should be mindful of going forward. Thanks in advance.