Real Estate Agent · Boca Raton, FL · Member since 2015 · 74 posts · 57 votes
3y
This may end up being a good play over the long term (and I don't know this property specifically), but personally I think the assumptions could be a little more conservative. I expect the calculator would show this to be slightly underwater on the cash flow after adding in management and making some adjustments to the vacancy and maintenance assumptions.
Regarding the management question, I think you should always factor in management expense to judge the performance of the asset itself and then you can decide if you want to "get paid" the market amount for doing the job of a manager. For me, the answer is always to hire it out.
Real Estate Agent · Boca Raton, FL · Member since 2015 · 74 posts · 57 votes
3y
This may end up being a good play over the long term (and I don't know this property specifically), but personally I think the assumptions could be a little more conservative. I expect the calculator would show this to be slightly underwater on the cash flow after adding in management and making some adjustments to the vacancy and maintenance assumptions.
Regarding the management question, I think you should always factor in management expense to judge the performance of the asset itself and then you can decide if you want to "get paid" the market amount for doing the job of a manager. For me, the answer is always to hire it out.
Lender · Member since 2022 · 338 posts · 374 votes
3y
I would say it very much depends on how busy you are - if you are very busy I would recommend hiring a property manager - if you are not I would manage it yourself to not further eat into cash flow!
Investor · Nashville / Smoky Mountains, TN · Member since 2019 · 110 posts · 49 votes
3y
@Logan Rhea
I would always recommend running numbers with PM factored in. This looks like a break even deal to me personally, but a good house hack opportunity none the less.