Evaluating My First Duplex Deal Analysis House Hacking

[Jacob Sontag]

Hello all,

I recently posted about a duplex that I was looking into and wondering what anyone thought? Since this would be my first deal and I know that I am wanting to invest in real estate throughout my life.

A little bit about me; I just graduated college just over 4 months ago and have a steady job. I would live in half of the duplex for about a year or more and rent out the other side, eventually renting out both sides. I would also have a roommate in my half of the duplex.

Now the property: The listing price is $250,000. It has been on the market for over 3 months. It has 2 units and 2 beds 2 baths on each unit. It has a big lot and about double the square footage of most duplexes in the market. It has tenants in there that have been there for a while (from the real estate agent) and pay $850 in one unit and $950 in the other. The surrounding market and location suggest this is far too low and should be at least in the $1250-1400 range from what I can tell. The seller does not allow tours of the house unless there is an offer that they like, which is why I suspect it has been on the market for so long. I qualify for an FHA loan and would most likely put 3.5% down because I don't have 20% to put down at the moment. The lender said that my monthly payments (loan plus insurance plus taxes) would be about $1450 a month.

The area is in a nice part of town next to a big navy base, so I feel really good about the location!

If there is anything I'm leaving out, let me know. This would be my first deal and think that this is a great starting point, house hacking, as well as building some cash flow and equity. Also great opportunity to start landlording!

Thank you very much in advance for any help!