First House Hack Deal

[Omar Dolmus]

Hello all,

I've been looking at this triplex, and leveraged the BP's rental property calc and it shows me that this has potential to be a great deal. I was able to get a lot of the numbers from the seller so it makes for a more accurate underwriting. The current rent the seller has is significantly below market with the avg rent in my market for a 3/1 & 2/1 being $2k+ and a 1/1 being $1,850. The seller informed me all tenants leases will be up by the end of this year. From my knowledge this would be a great value add and could possibly generate a 20%+ CoC ROI after I move out and lease the last unit. What I want to know is am I missing something? This seems too good to be true.

Side note: It has a newer roof and Unit 3 was recently renovated.

Here are the numbers:

• Purchase Price: $460,000
• Interest Rate: 6.3%
• Down Payment: 3.5%
• Rental Income: $3815
• 3/1 Unit 1: $1365
• 2/1 Unit 2: $1300
• 1/1 Unit 3: $1150

Expenses:

• Mortgage: $2,748
• Property Tax: $687
• Insurance: $139
• Garbage: $125
• Water/sewer: $137
• Maintenance (4%): $216
• CapEx (6%): $324
• Vacancy (8%): $432
• Management Fee (8%): $432