Bad idea? House hack
Good morning everyone,
First time poster/potential buyer. So my question is, is negative cash flow ever ok? So here is the situation. I am looking at a 3 family that brings in about $2750 monthly. I will have to live in one of the units because I will be using a 0 down VA loan, so I figure $1900 monthly instead. I have done a rough expenses chart and figure it will be around $2270 a month in expenses. So I am looking at -$370 a month. I will be coming from paying $825 before utilities at my current apartment so I don't see this as being to bad. The building has been approved for a 4th unit in the past but was allowed to lapse and would need renewal. I have money to potentially put in a 4th unit and bring the property back into the positive. The property also has a 2 car garage that I am led to believe is not being rented at this time. The property is in close proximity to a good sized college. Abundant off street parking. The money for the 4th unit I was planing on using for a second property, but I think the potential of a 4 unit building once I move out is pretty good. Definitely new to this feel free to rip into me/ ask for more info. I am still trying to get more info from the current owners. One last question. They are asking $320,000 for the property. How low on an initial offer do you guys go? I don't see the property till tomorrow.
Thanks in advance