House Hacking Jersey City
Is $550,000 price point in Jersey City too expensive to house hack and cash flow eventually when you move out?
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Here’s an overview of his numbers: he got it under contract for $425k only because the house has a mother-in-law unit that can rent for $1k/m. Got tenants with leases already in the other two units with $1.5k/m each. Gross income he’s looking to collect is $4k/m. He went with a debt service loan (higher rate than a conventional) so his loan payments are a bit higher. Did 20% down. Closing costs estimated at $13k plus estimate for finishing the bonus unit about $12k. His taxes, insurance, and water/sewer liabilities are roughly $700/m (5k taxes 2k insurance, 3.2 water). Now this is not a house hack so his net is about $1k. Had he househacked and lived in that bonus unit himself he’d be still pocketing roughly $700/m plus live for free.