Financial plan for a FHA on a live in duplex.

[Account Closed]

I am trying to put together a Financial plan for getting a live-in duplex on a FHA loan. I basically what to get a FHA loan and live in which is required and have a the other unit rented out. I'm just starting out and I need to save up some capital so I'm not looking to buy for another year and a half but I am trying to figure out how much I need to put together. I'm also trying to learn the actual process of a "mortgage" or getting loan for a house.

I'm looking to get a duplex for 50k rent @ 500 per side. I also wonder if paying rent for you own unit is a good idea because I will be using a property manager for it.

This is what I think I need to know and some questions I have. If I'm missing anything or know where I can find them out please fill me in.

What are all the closing cost associated with a FHA loan? Estimates?

Does the required down payment change depending on your credit score? I read somewhere that it would require 10% vs 3.5 if you score is under 500.

This is how I see the numbers right now 

3.5% of 50k = 1800 for down payment.

3k for closing cost?

500 for inspection 

So with this I'm looking at 5300 to get the property. Just looking for some insight on the total cost of getting a property at 50k so I know what I need to put together. I will also be using a property manager with runs about 10% of rent. Any advice or info is appreciated. 

Thanx.

[Eugene Beard]

That was my original idea to do a FHA with a multi family. Welcome to house hacking! anyway, I would suggest using the rental calculator to determine how much its gonna cost you in addition to what you mentioned above for insurance, management costs and repair costs. Im not sure what the real estate market is like in Indiana but 50K for a duplex sounds like its run down or in a bad area... but maybe(hopefully) u find a good deal at that price.

If it is run down remember to add in repair costs. If I remember FHA rules correctly you have to make repairs for it to be liveable before either you move in or you try to rent it out... I forget which one so assume both. also assume its coming out of your pocket!

Another note: if you are going to live in it I suggest you manage the location yourself! It will save you a ton and you will learn even more! its a win win! :)  But still include a management company costs into your calculations so when you do eventually move you have budgeted for it.

Good luck! Let me know how it goes. We are in the same boat! Im with you You can do it!

FYI: Im 25 looking to do house hacking in Atlanta GA for my first investment property and home. Saved up to 15K so far and it doesnt feel like its enough to cover everything. Duplexes here are 100K if im lucky on the MLS....