Deal Analysis - 4 Bed 2.5 Bath; House Hack/BRRRR (near ATL, GA)

5 Replies

I'm analyzing a deal to house hack and rent by the room. There's an extra office space that I can convert into a bedroom for myself, along with 4 other ones upstairs that I'm thinking of renting out for $800 each (1 bed 1 bath in the area is around $1300 according to rentometer). After the 6 months of seasoning, I'm hoping to refinance and get back some of my capital. What do you guys think?

Purchase: $405k

Personal contributions: 12k (closing costs) + 15k (repairs) + 20k (5% down payment for conventional loan) = $47k

Pure Cashflow: $500/month

Cash on Cash ROI: 13.33%

ARV: $475k? I found another house with similar bed, bath, square footage sold recently at this price. Would this be accurate? The Zestimate was over 510k for that house, but not sure how accurate that is.

@Sean Chua

I would reach out to a local agent and PM to confirm the rents and run the comps. Luckily with this being your primary residence you can tap into up to 95% of your equity in a cash-out refinance which if by doing that you still cashflow would be wonderful. The deal looks good initially with a COC return of 13.33%. $500 pure cashflow is good.

I think your evaluation sounds great! If you would like I can help you run comps since I have MLS access and I am trying to do the same at the beginning off the year and would love to follow your house hack journey :)