First Property! Owner-Occupied Duplex. Looking for feedback…!

[Matthew Tally]

Hello Everyone,

I recently purchased my first investment property, which is an owner occupied duplex.  I am seeking advice/thoughts regarding this investment.  How did I do? What can/should I do for better margins?  When can/should purchase next multifamily?

FHA owner-occupied 3.5% down ($7k) on a 30fix at 4%. Everything was rolled in and seller's concessions covered closing.

Tenants were already in other unit and they just renewed a 6 month lease as of this month. Current rent $950 - I pay their water ($50 a month).  Rents in area are $1,100 but tenant's apartment needs TLC. Update kitchen, floors, paint, etc…Looking at around $7k with labor and materials.

$1508 (mortgage/tax/insurance) -$900 = $608 to live in other apartment. (Which needs paint and updated kitchen - $4,000 labor/materials.  

After updating both units ($11,000), renting both for $1,100 (bottom could get $1,200) and $100 a month in water bills…$2,200-$1,508 -$100(water) = $592 a month cash flow once I move out.

I know I am not calculating vacancies, etc… How did I do?  

Thanks,
Matt