My first Duplex, deal advice please

[Jordan Williamson]

I'm looking at purchasing not only my first home but my first rental investment. I am looking at duplexes in my area with the idea of going owner occupied and living in a side for a year or so and then purchasing again owner occ. I looked at a property today and am wondering if you brilliant fellows will look over the number with me. I'm not sure if I should run the numbers with or without me living there. Obviously the numbers are going to look bad if I'm living in one side eating up half the rent money.

Purchase price: 103,000
Rent: 1300 (both sides rented $650 each)
taxes: 2240
insurance: 1020
Maintenance: 1440 ($60 per door a month, sound right?)
Vacancy: 1300
FHA 3.5%: 3605
Mortgage pmt including mortg ins: $527

How does it look to you guys? It is in a decent neighborhood, but is older being built in 1984.

[Joel Owens]

On the face of it with landlord not paying any of the landlord utilities it is 78,000 at a 10 cap at 50% annual expenses. This is not including any capex (repairs) you need upfront.

If utilities are paid by landlord go 55% to 60% annual costs.

Now with you living in one unit the plus is you get long term low financing but if you sell it's not really much of a bonus in a few years. Are you okay meeting your monthly obligations regardless of if the tenant in one unit can pay or not??