There was no water leakage in the basement and no humidity at all.

So in the worst case, I'm living for free.Other variables: It's a 1-acre lot that's zoned for multi-family and has enough leftover space that I could use someday for a triplex or just divide it and sell.New roof in 2019, new hot water heater and HVAC within the last 3 years.The utilities are combined so I'd either have to include it in the rent or work out another solution.I think I can get it at $120,000 with either 15% down on an investor loan or 5% down on a conventional mortgage.Taxes: $950Insurance: $1200I would manage it myself for now.In my various scenarios, I either run $1000 a year for expenses for living in the main house and renting out the MIL suite or up to $3000 a year in expenses for the student rental scenario.

) - Gross Monthly Operating Income 1,496.25 Monthly Operating Expenses Property Management Fees Repairs and Maintenance 110.00 Real Estate Taxes 333.00 Rental Property Insurance 51.33 Homeowners/Property Association Fees 10.00 Replacement Reserve 110.00 Utilities - - Water and Sewer - Gas and Electricity - Garbage - Cable, Phone, Internet Pest Control 75.00 Accounting and Legal Advertising Monthly Operating Expenses 689.33 Net Operating Income (NOI) Total Annual Operating Income 17,955.00 Total Annual Operating Expense 8,272.00 Annual Net Operating Income 9,683.00 Capitalization Rate and Valuation Desired Capitalization Rate 10.00% Property Valuation (Offer Price) 150,000.00 Actual Purchase Price 154,000.00 Actual Capitalization Rate 6.29% Loan Information Down Payment - Loan Amount 150,000.00 Acquisition Costs and Loan Fees 4,000.00 Length of Mortgage (years) 30 Annual Interest Rate 3.250% Initial Investment 4,000.00 Monthly Mortgage Payment (PI) 652.81 Annual Interest 4,830.53 Annual Principal 3,003.19 Total Annual Debt Service 7,833.71 Cash Flow and ROI Total Monthly Cash Flow (before taxes) 154.11 Total Annual Cash Flow (before taxes) 1,849.29 Cash on Cash Return (ROI) 46.23%  So no money down and the tenants are paying for you.

You may choose to do more like 5 or 6 months if your portfolio is only a few units or your equipment age (like water heaters, A/C or furnaces) 

Heat and water paid by LL is very common. 

Currently my mortgage is 2250 this include property taxes,  insurance, water and electricity.

I’m thinking about house hacking for the first time with an FHA loan 3.5% down.There’s a duplex that someone is selling me off market at $220k in a very good area in Tampa, FL (West Tampa is the area). 2/1 each unit and the rents are usually $950-$1,000, separate electric meters, one water meter.

Yes, the $5,000 worth of work is a guesstimate, assuming I'm only doing touch up on flooring, water damages (maybe), etc.

I have 13 years of residential remodeling experience, operate a one man residential construction LLC, and have a mentor with 30 years of residential remodeling experience that includes 4 flips.Here are the Deal Details:$450,000 = Property Value before renovations began$350,000 = Current value of property$220,000 = Current Mortgage held by parents$160,000 = Cost of making sale ready$380,000 = Parents total investment$500,000 = After Repair Value (conservative estimate)$120,000 = Profit of project$(10,000) = Loss of current equityHere's the Scope of Phase 1:Finishing current 1000 sqft renovationNew 1000 sqft garageNew 100 ft drivewayRenovating 1,500 sqft craftsman barnNew septic systemNew water wellAdditional Information:Despite that the property could sell currently for $130,000 net and the estimated profit will only be $120,000, my parents still want to continue with the project. 

This is local.I use 8% vacancy in my underwriting.Bump CapEx and repairs to 15% combined.Did you verify the water/sewer expense with the city?