Looking at purchasing a duplex with FHA to live in for 2 years fr

[Nicholas Mendez]

Hi guys, I'm looking at purchasing a duplex from an old sports teammate of mine. He's moving soon and wants to sell (he's currently owner occupying one unit). He has a tenant in the other unit currently renting. He's asking for $225k for it. Each side is a 2 br/1ba.

Rents in the area look like we'd be at $950-$1,100 per unit. I'd be owner occupying 1 unit for the first 2 years, then moving out and buying a single family house for myself to live in, and keeping this duplex to rent out both sides. I think $225k is a bit high for the area - it's not a luxurious area by any means. Considering the 1% rule as well, if each unit rents out at $1,050/month we'd be at $2,100/month so about $210k. I'd be utilizing FHA for the loan on this.

Mainly I really need a place to live as well - I WFH full time and run a business and having a stable home for a couple years where I can do what I want is ultra valuable to me. Currently living with a family member and I'd like to move out ASAP but don't want to dig myself into a financial hole here. Overall, what else should I consider when thinking about purchasing this and making him an offer?