USDA house hacking analysis

[Heath Bressette]

I'm currently looking at my first house hack. Looked at a property recently but unsure if it's a good deal.

Asking price $215,000

USDA financing available

Duplex: 1 unit $1200/mo, 2 unit $750/mo

Built in 1883 and very well maintained

Total mortgage cost is about $1600/mo. This only includes 1% down, $2,150. I am currently renting an apartment for $1300/mo so this would put my new rent/mortgage at $300/mo. Plus vacancies, cap ex, maintenance etc. we are looking at a new rent of approximately 6-700/month. Which saves me $600/month. I would live in the 2nd unit to do some minor updating. The first unit has already been updated. Taxes are $4,800/year and the home was assessed last year at $150,500. This raises a major concern from my viewpoint. Why is the assessment so low?

Any advice or thoughts would be greatly appreciated!