315k for a duplex? Just want some feedback friends

[Conor Rohrer]

Okay so I have a property that caught my eye and I'm a little stumped. They are asking 315k, it's a duplex in a class A neighborhood with 3-1 and 4-1 units (bed-bath) the units are rent ready, I just saw one of them today the other one I see Monday. The total rent for the property is 1400 for the 4 bed and 1200 for the 3. I was going to use an FHA loan and move in to the 3 bed with two friends and rent the other side out. At first the numbers worked, but now i'm leaning towards that being too expensive for a duplex just not enough rental income. Living in one unit and renting the other unit I would be taking in 2500. I am investing in the lower east side of Milwaukee, prime real estate that just seems still expensive...I might be negative cash-flow after I move out, but that area is only going to go up in value. Any help would be appreciated. Thanks guys!

[Charles Baldi]

@Conor Rohrer I am not too experienced, closing on my first duplex now, but to me it sounds like a case of needing to narrow down on exactly the type of property you want and what your criteria are. If you want a cash flowing property once you move out you’ll have to decide how much cash flow is acceptable to you and make sure you include management costs. If the numbers work, you’re good, if not you either move on or offer whatever does make your numbers work. Or maybe you want somewhere that will appreciate and you need to do enough research to know where is good to buy and how much you are willing to pay to buy the property. Either way I recommend using a calculator and comparing against your standards. That’ll help take the guesswork out of which properties to offer on. You can either use BP calculator or personally I created my own on excel. Hope that helps a little!