Real Estate Reality Check

[Riley Breck]

I am in kind of a pickle with my current situation when in comes to REI. My current plan is to purchase a multi-unit property in Key West, Fl (Current market prices are 625k+ for viable choices in the area) and house hack the property. With my current assets and income does it make any sense to take on that size of a mortgage (0% Down VA loan)/fees ect. from a risk perspective? I am very fiscally responsible, but this is my first real estate investment and I don't know if I am over my head. I've done quite a bit of research on the area and the rent estimates look quite promising, but maybe their are numbers I am overlooking and it's unfeasible. As as example one of the houses I am looking at closely is listed at 650k 4/2 with a second unit that is 1/1 (I would live in the 1/1), recently updated and doesn't appear to need much work done to it.

Current Assets - Approx. 65k Cash / 15k in IRA

Income (Including Housing Allowance - 2.3k) - Approx. 70k 

Estimated Single family Home cost = 350-500k (Current housing Market makes it impossible to find a viable house under that price in Key West, Fl

Estimated Duplex cost - Approx. 625k+ (Not including agent fees, closing cost ect.)

Rent Estimates - 1 Bed (2.1k) 2 Bed (2.8k) Both Conservative Averages as of 4/2020

As active duty Military my second choice would be to return home to a much more moderate housing market, utilize housing allowance (1.5k/month) and utilize the same strategy.