First time Househacking- Break down my deal!

[Keith B.]

Hi everyone,

First time homebuyer, first post, and first analysis all at once so please be as critical as you like; it's the only way for me to learn. I have a multifamily property under contract for $600k. The projected rental income would be $6000/monthly, projected cash flow is ~$1000/month, and CapRate at 7.2%. In addition to the mortgage, property taxes, and insurance, the projected calculations are taking the following expenses into consideration (5% rate for vacancy, 5% for repairs/maintenance, 5% for CapEx, and 10% for property management; otherwise the income figures would be higher. The property is a B- area with only mild appreciation historically but it's near a metro hub so finding renters won't be difficult.

However the property is nearly 100 years old so it looks dated from the exterior. The interior looks decent with only cosmetic rehab needed, some appliances changed, new floors, and a re-tiling of a couple of bathrooms. I will know more after an inspector and/or a contractor sees the house. I did pay the asking price for the property as there was another bidder and I wanted this property due to my lack of experience and rising interest rates. Bad move?

I plan to house-hack it so the rental income/cash flow will be significantly less. What do you guys think of the deal? Are there any factors that I'm missing? I can still legally back out of the contract if needed but I would love to hear from your guys first!