Updated almost 7 years ago on . Most recent reply
House Hack and rent out my current home advice
I am currently looking at purchasing a new property where I can house hack and rent out my current home. I am located in NH, and am looking at a house that has an ADU. The property is listed for 439K and taxes would be $7200 a year. I would rent out the house and live in the ADU. I believe the house would rent for $2700 a month and would leave me with about $400 profit without factoring in vacancy, repairs, capital expense and property management. With property management, vacancy, repairs, and capital expense I would be $450 under. This property would also include me putting $90,000 down. Also, my current house I would break even on after vacancy, repairs, capital expense, and property management. Both houses are pretty new. The one I am looking at is a 2005 and my current home is 1987. I expect both properties to appreciate at market value.
Am I better off putting my money elsewhere? Any advice would be helpful.
| New House- Living | New House- Not Living | Old House | |||
| Income | 2700 | 3700 | 2000 | ||
| Expense | |||||
| Tax | 600 | 600 | 433 | ||
| Insurance | 100 | 100 | 150 | ||
| Water | |||||
| Heating | |||||
| Electric | |||||
| Snow Rem. | |||||
| Vacancy | 135 | 185 | 100 | ||
| Repairs | 135 | 185 | 100 | ||
| Cap. Ex. | 270 | 350 | 200 | ||
| Prop. Mgt | 216 | 216 | 160 | ||
| Mortgage | 1700 | 1700 | 875 | ||
| Total | 3156 | 3336 | 2018 |