Hello, I love BP and am motivated to stop renting and house hack. Living in CA everything is really expensive. Seeking to do a FHA for a duplex but how do I know if it is a good deal when I will need to pay for my unit? Do I factor in my share as collected rent? If so, doe the cash on return go out the window? Any insight for looking at this is much appreciated with thanks
Hint number one: look for "bargains" (eg. distressed properties with TERRIBLE kitchens and bathrooms)! Hint number two: when calculating all the property expenses and your house hack income, try to ensure that your resulting net monthly outlay is LESS than if you were still renting.
Are you ready to rough it? Welcome to BP. Others should chime in too. All the best...
Hey @Shirley Wagner I would run the numbers for the duplex as if both sides were rented and cash flowed a certain amount per door. Then if you decide to house hack it and live in half then of course you probably won't cashflow but your living expenses will drop considerably compared to renting someone else's house. Then when you move out your numbers will work with tenants occupying both sides. And of course always look for distressed properties that have a value add potential. I.E. Updating kitchen, bathrooms, paint, carpet, exterior and all that, then bump up rents.
Thanks guys. Good advice and will refocus my search. Take care.
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