Prospective Househacking Deal (First-Time Investor)

[Steven Colella]

So as I mentioned in my introductory post, I'm in the process of considering my first real estate purchase. The property in question is a 4-unit building. The plan would be for me and my partner to occupy one of the units while leasing the other four. In order to keep the costs manageable, we would plan to "pay" ourselves rent in the amount of the unit that we would be occupying.

So here's the breakdown. Let me know what you think!

Asking Price: $279,000

Offering Price: $268,500

Closing Costs: $6,000

Down Payment: $10,000

MIP Funding: $4,800

Total Loan: $274,000

Income

1x1 = $495

1x1 + den = $715

1x1 + den = $700

2x1 = $630

Gross Income: $30,480

Expenses

Financing (Principal & Interest): $15,600

Maintenance (pro-forma): $5,000

Taxes & Insurance: $5,051

Vacancy: $3,658

Total Expenses: $29,309

I know it's not exactly a cash cow, but it seems like a good opportunity to get my foot in the door, and start building up equity in a property for minimal costs. Thoughts? What am I missing?