Deal Analysis for a Duplex

[Shaun Inniss]

Currently under contract for my first deal, a New Construction two story Duplex located in the Sunnyside Area and currently doing my due diligence before finalizing the deal. Asking price of this Duplex is $475k. Financing the property through FHA and I plan to live in the property for a year. With the rental rates being upwards of $1850 per unit and mortgage payment is estimated at $3275.73, Im aware that this property won't cash flow immediately while it is my primary residence but plan to keep it as a rental. In total i will bring around $37k to close.  While house hacking the investment it would not be cheaper than renting another apartment but will potentially cash flow once I move out. Contemplating if this is a good deal now and long term, does anyone in the Houston Market have any advice in regards to analyzing this deal?

Thanks in advance.

Updated less than a minute ago

[Joshua Janus]

Hey @Shaun Inniss! Congrats on this deal that is under contract, and for taking advantage of a low FHA down payment. Have you broken all the numbers down including management fees, insurance capex, maintenance, PMI, etc. to make sure that it will cash flow after you move out with a reasonable vacancy rate for the area? You are also in an area that appreciates well so that is advantage to you.
If you are confident it will cash flow once moved out given the worst case scenario, it is a solid deal in my eyes as you are still benefitting from the other factors of owning investment property which includes loan paydown, tax benefits and appreciation. Cash flow will allow you to get into your next deal quicker so keep that in mind. 

Good luck, Josh