Currently house hacking. Purchased a duplex. Renting one unit for $2,800 and living in the other. The difference between my rental and mortgage is shy of $800 (including PMI). I plan on living here for two years. I'm on the fence on whether i should hold or sell. When i leave the unit i can rent it for $1600-1800.

Let’s say i get $1,700 for the one unit and $2,800 for the other. Puts me at $4,500 income, minus mortgage $3,600. Leaves me with $900.

I understand it’s not an ideal but while house hacking I’m paying $800 versus renting at $1600-1800.

For the time being i know it’s worth it, should i hold onto it even with such little remaining? Technically wouldn’t cash flow if calculated with expanses, maintenance, PM and C.E.

If i refi out of the FHA, I'll save an addition $300 which would help some but I'm quite a bit always from hitting 20%.

Relevant info - purchase price 480k, rehab 35k, ARV 550k i understand spread isn't great but better than nothing.

Thanks for input !

Marco's,

I think you are on the right track with your thinking. The underlying benefits of your house hack is the pay down on your loan for less monthly out of pocket than if you had a SFH. If the ARV holds true, after fees you would nearly break even as far as forced appreciation from the rehab. Perhaps in 2 years its worth more?

Analyze the deal from a buy/hold perspective with the assumptions you provided. If it does not cashflow sell as it has served its purpose for you. Less monthly out of pocket, loan pay down, appreciation, etc. The REHAB essentially paid the fees to sell. Let me put together an analysis for you:

1. When did you close? 

2. What is your loan amount and interest rate? 

3. What are operating expenses (I can also guess just to form an illustration)? Is your PMI $300?

4. Are you depreciating the other side?

Closed this past June. 
Loan amount is 463k @ 4.125%

I pay water which is about $75/m for the entire duplex. My utilities are $100/m 

$3600 is inclusive of PITI AND PMI. (Yes PMI alone is $300)