Owner Occupied Double

[Richard Grubb]

Hi guys I am purchasing my first home and want to know if this would be a good deal.  

I am approved for a FHA loan, I found a double that I like. It is an all brick double that was built in the 50's. It has central air, updated bathrooms, updated kitchens, newer appliances, etc.

The only problem is the asking price is 125,000 and the most I could get for rent in this area of town is probably $600-$650.

my rate on the loan is only 3.75%, taxes are only $3000 a year.  I know when I move out I wont make huge amounts of money every month but it should bring in something.

I am stuck and dont know how I should proceed.  I guess I can lowball an offer where I try to get it for under 100,000.  What are your thoughts.