Opinions on Cash Flow for First Multi-Family?

[Joseph Wiejaczka]

Hello,

I've been a long time listener but first time poster here on BiggerPockets. I am looking at a duplex to live in one side/househack for a couple years and then buy and hold. I'd be grateful for some opinions on the deal I'm currently contemplating to help give me confidence or to back away from it:

Price: $260,000

Rent: $2,500

1% rule: 0.96%

50% rule: $200 (I feel a 40% ($450) operating costs are more applicable here due to self manage and the property is only a few years old)

Cash on Cash: 11.69%

Annual cash flow while househacking (with cap ex/repairs factored in): will still cost me $9600 per year, but saves me $4000 for equivalent rent situation.

Annual cash flow without househacking (with cap ex/repairs factored in): ~$4,600 (just about $200 cash flow/mo on each unit).

I'm right on the fence but I'll add this is a really nice property/house, the best duplex I've been in.

Other factors: has 1 current tenant who smokes (not in the unit...but unit still smells like smoke) and unit would require some cash (I think about $4000) to clean the smoke up. This tenant is planning to stay for awhile.

Thank you for your thoughts!