[Calc Review] Help me analyze this deal

[Adam Keffer]

Background details:

I own my property free and clear (appraised at 165k, have a 130k HELOC available for the down payment and closing costs, etc,) which I would pay off once the deal on the duplex is finalized and our current residence is sold, ideally soon after. I don't think it would be a problem to sell my place for around 185k due to recent comps. I would look to clear 150-160k after closing costs/commission, etc would be paid out. With the remainder after down payment, closing, commissions are paid out, around 90-100k (it's an FSBO, owner is kicking in 5k seller assist), I'd be left with around 50k. Would look to invest half and then keep the remainder to pay down the mortgage on the 250k balance quicker so I could use the equity to obtain a HELOC on the duplex and use for a future SFH purchase.

My other thought would be to do a live in flip, and rent out my current residence for around $1100/month, but would have to eat the $314/month in HOA fees which would leave me with around $800/month cash flow.

Alternatively, the duplex would cash flow around $200/month (unique side by side duplex that's the owner added another garage/addition/deck on the owner occupied side we would live in) if and when we moved out (we have one child and are ok with having our 2nd in the duplex, but 3 would most definitely be too cramped, and we would forced to look for a SFH while renting out both sides of the duplex).

Thoughts? I know there are several different ways on the path to financial freedom and that the first deal is the hardest, but I feel if I don’t make a move on this property I’ll be stuck in analysis paralysis forever and never take the first step. I know the first deal is always the hardest!

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