Not cash flowing on first Duplex

[Nick DiTommaso]

After multiple calculations on multiple duplex properties in start of my investments, I have noticed I wont be cash flowing. Occupying 1 unit and renting the 2nd unit has only equaled out the tenant paying a good chunk of the mortgage payment and leaving me paying for the rest. Now this will be my first home and going through FHA. I am more focused on putting a small amount down payment and having some money in reserves for any extreme emergency compared putting a larger down payment.

After doing the math, calculating rent expenses, vacancy, R&M, CapX and considering all the possibilities in my analysis, I would still be paying a portion of the mortgage payment every month, anywhere from $150-275 per month. I would eventually be renting the 2nd Unit after a year, but does this seem common? I would certainly have W2 income coming in and seems great that someone is helping pay my mortgage, build equity and setting myself up for future success. As though I would not be immediately cash flowing, does this analysis seem a great choice?

[Joe Hughis]

@Nick DiTommaso - For a duplex (where you live in the other unit), it doesn't always work out where your one tenant ends up paying for the entire mortgage on the property and all the factors you mentioned. But you have to consider, that if you purchased an SFR you would be liable for the entire mortgage plus expenses, which I would venture to say will be more than $275 per month. You have to live somewhere, right? :)