Credit default insurance and a home warranty if your cash flow will allow it will allow a property to survive those stress tests

Here is some information on the duplex:Basic Info: 1941, 3B 1.5Bath, 2 BD 1 BathPurchase Price: 151KDP: 44K Rents: 22K AnnualMortgage/Taxes/Insurance: 13.5K AnnaulMaintenance/Other Costs: 2.5K Cash Flow: $5K/year The house is in need of some renovations: pretty much all new windows, a furnace replaced, siding in the near future (wood)  Is this worth it for a first year investment?

Then hope nature takes out the tree and insurance covers it.

It has a separate bathroom, shower, the plumbing and electric are up and running, It has a separate entrance too.I don't have permits to use it as a bedroom. 

The downside of an FHA is that upfront, you will finance 1.75% of the base loan amount in the form of financed mortgage insurance. 

These are all questions whose answers will help you chart the way forward ... there is no one size fits all answer.From an operational perspective it is always pleasant to know that your building envelope is relatively efficient (insulated and air sealed); that building systems (electrical, plumbing, HVAC and communications are up-to-date and dependable) and that you have the ability to put accountability for resource consumption in the hands of the tenants.  

An insurance policy on the members that buys out their share on death is a pretty standard method, for example.

Are you calculating for mortgage, taxes, insurance, repairs, vacancy, property management?

I reran a lot of plumbing with pex for the main floor through the basement.

what will be covered?