Beginner Investor Looking for Advice

[Jassiem Robinson]

Hi All! I'm a brand new real estate investor close to locking in my first property. However, I am trying to follow the BRRR strategy but also trying to house hack at the same time, so I'm not sure what this strategy would be called. Anyways, I have a property that I want to put an offer on but am anxious about the numbers due to my inexperience and was hoping the community could give me some advice!

Here's the breakdown:

- I'm looking at an on-market Duplex(2 bed/1 bath each unit) in an up-and-coming neighborhood in Atlanta. My gf and I plan on house-hacking initially and then renting out both units and refinancing it once we are able to get another property and move out.

- It's selling for 250k and the ARV is $353,276.

- I'm estimating 50k in repairs. With this 50k number, to get a 70% discount, my MAO is $197,293, which probably won't get accepted. However, the duplex has been on the market for 30 days.

- I will be utilizing the 203k FHA loan to get this property and rehab.

- I created a Cash-on-Cash return calculator and listed all of my expenses (I'm still trying to dial in more accurate numbers on some of the expenses but have general numbers right now based on some research). 

- I have my rent for each unit at $1700/month

- My estimated downpayment and closing costs are $24k

- Based on what I have, my calculations are giving me a cash-on-cash return of 18%. 

So my questions:

- Do you all think I should stick with 70% discount and pass on the property or low ball them? Or should I take an 85% discount to lock it in? There aren't many duplexes on the market and even fewer that fit my criteria and are accepting FHA loans.

- Am I missing anything in terms of calculations or considerations?

- Do you all think my overall strategy is a good idea?

[Amir Khan]

@Jassiem Robinson excellent feedback from Andrew Postell above. I may add; is the duplex currently producing income? How much are the rents? Your whole BRRRR strategy depends on rather good estimate on ARV. Have you consulted local realtors on how much this property would be worth when updated? Also, one good measure of what 'updated' properties are selling for within the subdivision is by looking at listed property's interior pictures. Look at average per sq. ft. price of those homes compared to not updated homes...