First Investment Property (Duplex)

[Adam Camacho]

All,

I would like for your feedback on the following offer. This duplex will be my first investment property and scared to make a bad deal that will follow me for years. I'm confused about the Monthly cash flow. Is it always this high utilizing an FHA loan?

[Jason V.]

As others have noted, your maintenance budget might be a touch low, but it all depends. 

What's your 10k in rehab going to get you? Is it all just deferred maintenance?

Yes, with a FHA loan, the CoC return is often going to be pretty solid - you just have to be comfortable with either holding it a little longer (because you'll have no equity when you sell) or confident you can add some value.

If you're buying it in your name (since youbare, because it's FHA) then no, you won't be cutting a check from yourself to yourself every month for rent. I suppose you could, and maybe a CPA will tell me I'm an idiot, but from a tax/business perspective it doesn't make any sense. The house will be on your personal tax return either way. (And I think you get some added tax benefits for keeping it in your name whIle you live there as well.)

Looks decent, especially in the current market - pull the trigger if it's where you want to live.