Owner occupied...I need a place to live

[Hernan B.]

Alright, so at the end of July my current lease for my apartment, that I am currently sharing with my girlfriend, ends. I have recently bought a 4 unit apartment building, so I am not entirely new to the real estate business. Now I am looking to potentially buy an owner occupied duplex but am considering all possibilities. I was all about the duplex until I started thinking about the numbers, I have included the numbers that I could make off the other unit AND the amount we currently pay in rent in my unit (best case scenario would be to pay less). Very rough but fairly conservative estimates: CAP rate= 5.5 %, fits very close to the 50% rule (~48%), cash flow/initial investment= 5 %, NOI ~ 17k, etc etc.

Am I wrong in thinking these numbers don't look so good? I believe the bonus would be that I would get a lower interest rate on the loan plus qualify for FHA loan (low down payment). Should I be thinking about it differently than a true investment since this is where I live.

What are the alternatives? Buy a slightly cheaper single family house (more ideal- since I wouldn't have to worry about the tenant next door) and just consider it rent from now on? Continue to rent and continue to put money in good investments?

Does anyone have any advice on owner occupied duplex vs single family vs renting?

Furthermore, what kinds of loan options are considered best? Should I try to get an FHA with a lower down payment (and invest the left over) or a conventional loan with a higher down payment to try to get rid of the mortgage insurance? My girlfriend and I would likely split all costs to a reasonable extent and she has offered to go in on the mortgage, would this be more or less beneficial to both of us (vs one or the other)?

Does anyone have any input/advice on any of this?

Thank