The monthly cost basis for this would be around $2100 including interest, principle, taxes, insurance, garbage and water.

@Josh Butler 3% is possible in my market also, but those deals are harder to come by. 2% is not that hard to hit on a regular basis.

At 5% down the annual premium goes from 1.35% down to 1.30% not much only 5 basis points but its decent.Only other way to reduce annual MI premium is by using 15 year loans which have a much lower annual premium when you put more money down but it won't be too great for cash flow since the payment is much higher.If you put 10% or more down your MI will fall off when your loan reaches 78% LTV based on the value inside FHA's system called FHA connection (not market value unlike conventional).Most people dont put down 10% anyway maybe 1 out 40 people who uses FHA puts more than the min 3.5% down in my experience.

I am there every day for work though so I do know the area decently, just not on a personal level.In my area I wouldn't even hold a thought to a 1br duplex because nobody would ever rent it!

Thursday's Mastermind lunch meeting at Big Daddies is one of the bigger area meetings to network on a weekly basis.

@Tom Yung Thanks for correcting me....I learn every day on BP.

I hosted the event last night and do so on a quarterly basis.  

@Ronald Holloway  I split your post into its own thread.First, when you inherit a property your "basis" for taxes is the value of the property on the date of death. 

Need to make sure you're taking everything into account- underestimating turnover expenses - this is likely your biggest expense on an annual basis.

I'm only 14 and have no real experience but I have to say that BiggerPockets is getting me closer and closer everyday to achieving the lifestyle of my dreams.