Newbie need advice on house hacking

[Anthony De La Rosa]

Hello everyone! This is my first post ever. I've been listening to the podcast for a few months and reading a few books to self educate about real estate investing. To keep me from being stuck in analysis paralysis I've been looking for a multi family property that I could house hack. I finally found one that is closest to my current job and the price fits my range. It's a "duplex" on the market for $150,000. By duplex I mean it's 2 units in a small apartment complex. Each unit was currently renting at $900 but was "newly renovated" and should be able to rent for $1000 each. Newly renovated meaning they replaced the bottom cabinets in the kitchen and installed granite countertops and new laminate and tile floors. 

So I was excited to finally find a property in my price range that I could house hack. Here's my problem. I went to go look at it yesterday and let's just say the pictures and description look way better than the actual property does. The top cabinets in the kitchen are still old and don't match the bottom cabinets. You can see the thick multiple layers of different shades of white paint used on the inside of this unit. It's located in a very low income area.  Found a couple of holes in the walls. It's also very easy to spot the multiple patches they have made in this unit. Suddenly it doesn't feel like it's worth $150,000. 

What I'm asking for is some advice or really some motivation on how to proceed. Should I swallow the knot in my throat and begin my REI portfolio by buying this property? Or should I avoid possible disaster and keep looking for another property?

Thanks in advance for any advice! 

[Michael Noto]

@Anthony De La Rosa  I have been involved with a good number of clients looking to house hack here in Connecticut and here is how I would counsel you based on the info you provided.

Do you really want to live in a low income area?  Even more than the numbers, being comfortable living in the area the home is in is very important.  Nothing trumps your safety and piece of mind. If the area doesn't work for you now you can narrow your search parameters and not waste your time with areas that don't work for you.

Do you want to deal with a property that needs work?  Do you have the time and/or skills to do so? A lot of people like the idea of buying a house that needs work until they have their inspection and realize it is probably more than they are willing to deal with.

It sounds like you already know this place is going to be a disaster.  At some point you set different criteria and expectations for the home you will eventually buy.  Is this home in line with those expectations?  Are your expectations realistic for the marketplace?