Updated almost 7 years ago on . Most recent reply
Need Your Expertise/Advice
Hello everyone,
I could really use some of your experience or advice. My husband and I are trying to buy our first investment home. Our goal is to house hack in a duplex. The market is so competitive that every offer so far is highest and best, and have not had one accepted. I have spent the past year reading and listening BP books, podcasts etc. I know my numbers have to work. Here is my confusion:
We are looking at an older home currently, and considering the idea of moving in and then converting to a duplex. I am not sure how to calculate the return because we are living in it. As a renter, this alone will save us money.
Here are my thoughts:
Look at ARV (as a SF home or as a duplex?)
Brrrr says 70% - repairs and costs (should this still be the same formula if we are going to live in it?) We are thinking it could be a 2 bdrm 1 bath unit 1 potential rent would be $900, 3 bedroom 1 1/2 bath unit 2 could rent for $1200.
I know there has to be a lot I am not thinking of....