Suffering from Analysis Paralysis!!

[Scott Raynor]

I have long wanted to get into real estate investing and finally got up the nerve, but now I'm worried I'm paying too much.  I've consulted with local real estate agents and they gave me a number of $215,000, but I'm paying $224,000 along with $6k in seller concessions for a total mortgage of $230,000.

I'm going to "house hack" and live in the one unit the first year and update appliances, floors and the bathroom.  There is a tenant in the other unit who has been there 6 years and is planning to sign another year lease the end of this month which will off set my mortgage by $1100.  If my math is right, I'll have a housing payment of about $800/month.

My plan is to move out after a year and rent out the refurbished unit for $1200/month.  The cash flow would then be about $375 after all expenses.  I'd like to then refinance and hopefully have enough to use on my next property, but that's where the purchase price comes back into play.

Am I falling victim to analysis paralysis??