Advice! Duplex FHA Loan - First Deal Homebuyer - Wisconsin

[Nickolas Boylan]

Hi all! Wondering everyone's thoughts on this deal. It's a 3br and 2 bath each side duplex. I'm looking to become a first time home buyer (I'm 24). You can see my #s below, but I'm figuring I'll be paying around ($700) a month while living there. A lot of duplex success stories have their whole mortgage paid for. Maybe I get the price down a little, maybe I get another roommate for an extra $300, etc, but just getting your thoughts! Thanks. 

Home Price	$234,900
Down	$8,222
3.50%
Mortgage Amount	$226,679
Mortgage Pymts	360
Interest	4.00%
Yearly interest	0.003
Mortgage Monthly	$1,082
PMI	$179	0.95%
	Yearly	Monthly
Income ($1,000 other side; $300 friend)	$15,600	$1,300
Monthly Expenses - Total from below	$24,080	$2,007
Mortgage (Monthly+PMI)	$15,140	$1,262
Property Taxes	$3,900	$325
Insurance	$1,080	90
Property Mgmt	$-	0%
Cap Ex	$1,320	5%	$110
Vacancy	$1,320	5%	$110
Repairs	$1,320	5%	$110
Net Income	$(8,480)	$(707)

[Dave Rav]

This is awesome!  My very first property was a duplex (just like you!) in PA.  I still own it, though my situation has changed and my CF is less now (story for another day).  Anyways, some points here:

1) always always ask for concessions from seller (all they can say is "no" so you have nothing to lose).  Ask for price break, seller assist, or fix any major repairs needed.  Even get them to replace dated systems (HW heater, AC, etc) whose deferred maintenance will likely cost you in the next 3-5 years or so.  

2) Another creative (but depending on how you do it) possibly more work intensive idea to improve cash-flow --> rent out the other unit by THE ROOM.  Seek young professionals, or college grad students and rent out that 3 BR for $400-500 per room.  That brings you as much as $500 more per month.  

3) AirBNB the other unit - many possibilities here!