Hello! After being outbid on multiple other properties, I am finally under contract on a duplex for 435k. It's a 1950's home, has long term month to month renters at 1200 each. On septic that hasn't had proper inspections, but will be getting one next week. In an up and coming area. Close to college, downtown and on the bus line. Did a walk through and it looks cute & decent shape on the outside, livable but poor condition in one unit, unit two is in better shape. Both need paint, flooring, kitchen help at the very least. The window and door frames look weathered and like they need new ones.
I can get fha financing at 3.5 down ($26k) and the mortgage would be $2500/month at 2.99%. I think rents can be 1300-1500 in the next year after some work.
I worry about asbestos, lead paint, the rent moratorium, septic issues. I also don't currently have a mortgage or debt and it feels difficult to jump into this much mortgage debt.
Please help. I want to add a multi family to my portfolio, think I'm up to the challenge of being a landlord, but the risks and unknown costs give me pause. Is an older property a good first investment? The inspection is scheduled for Tuesday.
