How do I calculate numbers while house hacking? The Cash flow on the calculator obviously says i am negative cash flow. So how do i know if its a good deal?
Determine what the cash flow, ROI, and cap rate will be when you move out and rent out the whole property.
Are both units the same or will one demand more rent than the other one? What is the purchase price? How much do you plan on getting in rent? Taxes? Insurance? These some of the values needed to help answer your question
Think about it like this.
In terms of an ivestment utilize all rooms, since you are technically renting from yourself.
In terms of personal balance sheet do the other units cover your living expense and then utilities? That's househacking a multi.
Post some details and we can be more clearer on the subject.
This property is a 3/1 that is rented for $1350.00 and a 2/1 that is rented for $1150.00
We would be moving into the 2/1 once the lease is up.
Asking price is: $250,000.00
my interest rate is: 3.75
Insurance: $200 (I estimated) this is my first multi family.
nothing "needs" to be fixed. (There are some cosmetic things that i do not personally like)
Just calculate your numbers based on if you didn't live there. That will tell you if it's a good deal or not. Run them using market rates and if they work, congrats!