Updated over 5 years ago on . Most recent reply
First home - house hacking!
Hey guys, I’m 23 years old and I’m very excited to say that I am under contract for my first property. It’s a corner attached townhome in the Stapleton neighborhood of Denver. I’m planning on house-hacking and I’ve included some stats below:
Purchase price: $365k with seller providing $6k in closing costs
Down Payment: $20k
Interest Rate: 2.875%
Total APR: 3.3%
Monthly cost: $1950 with $200 of that being PMI.
Due to restrictions on my mortgage, I have to live in the property for 12 months, so I only plan to rent out 2 of the bedrooms with parking spots at $900 each. With that rent coming in, I’ll only pay $150 myself.
After 12 months, I’ll move out and get a new renter for an additional $900. Now my rental income will be $2700.
Soon after that, my PMI will drop off, therefore reducing my monthly cost to $1750. With all rooms rented, I'll pocket $950 per month in excess or $300+ per room!
I’m really excited!