I'm just starting to accumulate some savings now that I'm two months into my new job after grad school. I'm thinking about buying a duplex and renting out the top unit while I live in the lower unit. The place is $269k, but overpriced in my realtor's (Dad's) opinion. I'd been looking at getting an FHA loan with $9,000 - $9,500 down. The rent from the upper unit is listed as $1,250 but could possibly be raised (I live in the same neighborhood now and rents are generally higher than that for a 2-bedroom, especially with a yard).
Anyways I keep going back and forth about whether it makes sense for me to do this. It would be awesome because the cost of the rent for the upper unit would essentially pay the mortgage (from my calculations). Plus I'd get a roommate for my unit, which would be an income of $600/month. But, I also have nothing else saved up besides a tiny bit in my 401k.
Any thoughts or ideas? I'm excited about this prospect but don't want to rush into anything. I do have parents who live nearby, are landlords themselves, and very helpful and handy in the case of needing repairs. They've also been known to give out 0% interest loans if something comes up.