House-hack: "Over-niching?", LLC?, does + $flow 1st yr matter?
I am a 24yo in the Buffalo, NY area. I have been living with my parents, and I saved roughly $45,000 to start my financial journey. I currently work in the healthcare field, and I am interested in house-hacking for my first property. I am anticipating using an FHA loan for this. As we keep hearing, this sellers-market is causing multiple offers on many of the properties I see on Zillow. I am working on access to the MLS. I am very green to this, as I have only been reading and listening to BiggerPockets over the last 2 months. I have a few questions, and any help would be greatly appreciated.
1) Experience in a graduate science-based program gave me insight to the fact that these programs are highly-competitive, and they draw in many students from out-of-state. Also, these programs typically require an in-person clerkship/rotation at a nearby clinic/hospital, which offers some back-up plan to the "remote learning" problem. I am looking at Multi's within 10mins of the local Colleges of such programs, and the respective hospitals, etc. Any advice on this type of college rental set-up? Too much of a niche to attack?
2) The average of rent charge in the areas I am looking are between $400-500 per person. I am becoming discouraged because every time I calculate $ flow or COCROI, I obtain negative numbers for each. Seems like I need to stiffen my payments to a house that is around the $130K range & minimal rehab to ensure that the total investment leaves me with a positive COCROI, but it is still practically splitting-even when I calculate. I am conservative with my income, and exaggerate my expenses a touch. My friend tells me a +cash flow the first year is not that important because when we move out, we can rent the full house at full rental potential with over 100% COCROI. Is this true?
3) Lastly, I have a good friend whom I have lived with before who is also in this same frame of mind, and same goals. All I know of LLC benefits are the tax breaks. Could I even use an FHA loan if I form an LLC? Any guidance would be appreciated.
If anyone is in the Buffalo or WNY area, or has experience in this market, I would love to hear from you. Thank you.