Looking to purchase 1st multifamily: Is a duplex the best option?

[Tony Iacovone]

Hello,

I've been reading on this forum for a while now, and plan on making my first real estate investment by the end of this year.

I plan on using FHA.

Upon analyzing a few deals (primarily duplexes) I have noticed that by owner occupying one side, it is extremely difficult to get positive cash flow. Is this common? Or am I just not finding good enough deals?

Also, I read on the FHA website that I am required to pay additional premiums (1.75%)?

Example:

$119K duplex

3.5% down-4,200 (rounded)

monthly payment with insurance and taxes-$922+ $300 (Premiums)=$1242

Rent one side out for $900=$342 loss

Renter pays his utilities, I pay $200 a month for mine =$542 loss. Am I missing anything?

I understand I would be cutting my rent in half by buying this property, but living by myself isn't necessary right now. (still in school)

I have about 8-9K to invest, and am questioning as to whether I should look at triplexes or even 4 family homes instead of duplexes. That way, I net some cash flow while living in the property.

Would love to hear everyone's thoughts on this. I understand the question is a bit broad, just looking for some general advice.