House hacking in Southern California

[Laura C.]

I'm interested to hear if anyone is currently "house hacking" in Southern California? Specifically the Inland Empire. Where did you buy? In what condition did you buy your property? How far below asking were you able to get the property? Does it cash flow or help cover your housing expenses, and if so, how much? 

I'm in the process of looking for my first deal, and in such a high price market, I'm having a hard time finding things in my area. Would love to hear a success story or 2 if they're out there!

Thanks!

[Ray Lai]

@Laura C.

House-hacking hear in SD. Thought I'd share some real numbers with you. It's best to get a duplex, tri or quad, but it's difficult to find them in SoCal. 

I just bBought a place listed $490k for $472500 in this hot seller's market in a central location in SD. It's a 4/3/2 townhome built in 05, 1390 sq ft. 

Numbers.

Mortgage $1700

HOA: $300

Utilities $200

Property Taxes: $465

Those are the actuals. Here are the hidden numbers:

Vacancy Reserves: 5% of rent

CapEx Reserves: 2% of rent

General Reserves: 2% of rent

PM fee: 10% of rent - but I'm self managing right now but you need to factor those in in case you move far away and want to rent out the property

Rents:

Master BR: Owner occupied
BR #2-3: $1300 to a friend
BR #4: $950