21 years old, 1st property. looking to house hack..
Wanting to house hack in DULUTH, MN. I have the numbers for expenses and what I can get for rent, the house doesn't need much at all. Am I being too conservative in the budget for expenses and what might some of you might recommend.
My brother says a 100 bucks a door. 150 - 200$ ideally Per monthly cash flow but I'm breaking about even, not acounting for tax deductions. Some advice would be greatly appreciated, thank you.
rent is being charged about 900-950/month per unit and there's 2 for the area averaging.
Cap-ex 10% 180$
Vacancy 5% 90$
Property management 100$
Maintenance 5% 1$ per sqft/month 122$
Utilities-- 200-250 month
Taxes - 2,100/yr - 175$/ month
Insurance 1100$/yr - 91$/month
2 laundry machines in basement
30 yr mortgage 794$/month 180,000 purchase price. 3.3% interst rate.
Most Popular Reply
@Chris Aronson Those numbers don't seem unreasonable, although from a cash flow analysis perspective you can remove your own utility bills from that number (those are resident figures and you should care about them for your personal budget, but they are not important when evaluating the property - a future tenant will pay them!). Of course, if you plan to always pay all utilities, ignore what I just said!
I will also note that the maintenance cost is going to be dependent on the types of tenants and the quality of the property. If it has new fixtures, appliances, etc. those maintenance costs might be a bit high. If it's in bad condition they could be low. Overall, they seem reasonable from my experience.