I've been thinking of doing this for at least 6 months now, but have been looking for the right location and price before proceeding.
I have a couple of options that I like after a simplistic analysis, and run a generic one through the forum. Let me know if these numbers sound good. I'm specifically looking for a 2-unit building so I can live in one unit and rent the other.
Price - $80K (I would shoot for less, hopefully 75K or even 70K. It's been on the market for 2 months and came down from 85K recently)
Rent - ~$500/unit. I don't know for sure, but I have a friend who lives in a comp across the street from the one I like most, and he pays $550. I erred on the side of caution.
So, my best guess at the monthly rent is equal to 1.25% of the cost.
Applying the 50% rule, the CAP rate is 7.5% (but i suppose it's redundant to calculate a CAP rate off a generic 50% rule when I've already used the generic 1% rule ... IE- CAP rate provides new no information).
I'm not sure how to estimate monthly expenses for things like repairs, but property taxes are ~$650/year (varies between 600 and 700 for the past 5 years). I just submitted a few questions about the place to the seller, so hopefully I can answer questions that will come up here.
The last piece is living in it. I currently pay $325/month in rent. My friend across the street from the possible purchase has declared intention to move in when his lease runs up, so we could fill my unit (I'd charge him $200-$300). So, that's a guaranteed $525-$625 for my side, plus whatever the other unit gets me.
Now for some philosophy on rental properties. I've wanted to get into the rental game, and I see this as the safest and lowest-risk way to do it. I can cut the vacancy rate in half by living in one unit. Also, the risk of tenant damage gets cut in half, etc. Plus, it gives me very easy access to the other apartment when repairs are needed, since I will live on-site. It just seems to me like the best scenario for learning the ropes.
Finally, does anyone have any suggestions on literature and blogs. I know y'all have posted them before, and I've looked through other posts. There's just so many posts, it's hard to filter through.