Hi, I am still a newbie and learning how to calculate numbers, If I was interested in a duplex to house hack, would a 1.7% Cash on Cash ROI be a good deal?
I'm thinking maybe since I would no longer be paying rent and still working so I would not be losing any money, also my tenant would be paying my mortgage.... but this is why I am reaching out to you. I'm not sure I am analyzing the numbers correctly.
@Michelle Elaine Fontan You could almost make 1.7% in a CD or bond fund without going into debt. You are assuming that your tenant will always pay the rent, unfortunately this is not always the case. Getting "free rent" will not make you rich. I suggest calculating your numbers assuming that you will rent out both sides at market rent. House hacking is typically a temporary situation. Living next to your tenants can become a full time job 24/7, 365. Personally, if I'm not making at least 10% COC, it doesn't interest me, but you do what you think is best.