Househack offer thoughts

[Alexander Gee]

Hey all!

I'm looking for some opinions regarding buying a duplex to househack. I have a property thats on mls I made in mind. I want to purchase with a FHA loan so I will have PMI. With this property the owner pays all utilities besides electric. I'm trying to base my offer on the numbers after I am no longer living there as I plan to for a year or so and then try to househack something else. The numbers:

Asking $129900

Will rent for $1700 (whole building after I move out)

Taxes/insurance are $375/month

Utilities are around $250/month

I'll set aside $340/month for reserves

I offered $109000 so that I would be financing around $105000 and that would give me a PITI of around $1025 (including PMI), and because its very close to 80% of ARV allowing me to potentially refi out of the FHA and free up that PMI money. I'm looking for feedback on the line of thinking here. I know there are things I can do to alleviate the burden of the utilities or get more rent (I.e. raising rents, coin laundry, charging for storage/garage) but I don't want to count on them when determining an offer.

Thanks in advance!