I'm new to the forums.
I have a goal to purchase my first property with an FHA loan this year to househack.
I was wondering what is the best way to analyze a multifamily property when being used as a househack? I want to try to do my best to make the best purchase without overpaying.
I would appreciate help from anyone willing to offer :)
One of the first things you need to consider with a househack is what the property will look like cashflow wise after you have left. Lots of people get a place as their first property that won't support itself after they have left.
To do this start with the basics.
1. What would PITI be (Principal, interest, taxes, insurance)
2. What are your estimated gross rents
3. Are the gross rents more than the PITI? If not move on.
4. If they are, how much more is the gross rent above the PITI?
5. Some people love to use the 50% rule, but that is harder to apply in many parts of the country right now (PITI < 50% Gross rents)
6. If the property meets that rule then start digging deeper. If it does not, but seems fairly average for your area then you need to start networking with other local investors to find out what sort of numbers are realistic for your area. Where I live it's so rare to see a 50% property that it's basically ignored here.
Thank you I appreciate the help. What would you look for once you begin to dig deeper?