Analyzing SFH deals as primary residence then rental later

[Brian Cheng]

So i have recently gotten pre-qualified for a mortgage as i am looking into dipping my toes in the REI. I am looking for SFH as there's currently not any good multis that are available in the area im looking for in Houston, TX.(Greater heights, Missouri city, sugarland, spring, etc) I want to know if i want to simply buy the house for myself as a primary residence, which then eventually rent out once i move out in however many years. When it comes to analyzing deals, do i treat myself as the "tenant" and factor in my mortgage as rent to calculate deals?

[Sarah M.]

@Brian Cheng Hey Brian! Congrats on taking the first step in your investing career. You’d want to consider what you could rent the property out for once you moved out. And, run your analysis the way you typically do for any straight rental property. You want to be sure the cash flow is positive & ensure it meets your own personal return hurdles.

Rent

-vacancy

-property expenses (property taxes, insurance, R&M, etc)

- mgmt fee (10%)

-mortgage payment

= cash flow

There are templates on bigger pockets you can use. You might also consider Eado or north side if you’re looking for a multi property. You could probably find something you could rent out the extra units to help cover or partially offset the mortgage. Good luck!