Fourplex Deal in Dallas

[Jing Lin]

Hi All, I'm a real estate newbie in Dallas hoping to house hack a fourplex. I found a recently updated property that's asking $400k. It has two 2bed1bath units and two 1bed1bath units. The property is located near an up and coming neighborhood with a large commercial development being built. However, it is still predominately working class minorities who live there. 

I am hoping to finance it with an FHA loan and live in one of the 1bed units. The rental income and expenses are listed below.

Annual rent adjusted for vacancies: 39,000

Annual Expenses: 16,500

      Insurance 2,500 Taxes 6,000 Utilities 4,000 Maintenance 4,000 

NOI: 22,500

Annual Mortgage & PMI: 22,000 + 3,300 = 25,300

Cash Flow: -2,800 

Cap Rate: 5.5%

I've already made an offer of $320k that was rejected. I am currently wondering if I should make a higher offer and at what amount.