First time investor made an offer and was accepted

[Nicolas Da Silva]

I currently made an offer on a legal “duplex” that is 3/2, 3/2. (All year leases). One unit is rented at $1,200. The second unit is split into two: 2/1 and 1/1. The 2/1 brings $1,200 and the 1/1 brings $600 (all monthly). The monthly total gross income is $3,000.

The property is from 1970 and needs a little bit of work on the roof. The offer, which has been accepted, is $335,000. It’s in Miami FL, which is why the price is so high. (A duplex in the same area in great condition would cost $500,000)

I have two questions:

1. does this sound like a good investment?

2. Should I do an FHA? Or seek capital from friends and family to avoid the PMI and get a conventional loan for 20% down?

Thank you for the continued support of the BP family

[Steve Hall]

@Nicolas Da Silva

Tell us the cash flow with the debt service and without, and then what the cash flow would be with the PMI.

BTW, you called this a legal duplex, but did not call it a legal non-conforming triplex. Do you understand the risk? Have you talked to an attorney, or were you hoping to save money and not hire one?