House Hacking (buying my first home)...help/suggestions
First, I'm excited to be here and hopefully some you guys will have some good tips on helping me buy my first house! I'm from Belleville, MI and looking to purchase a multi-family in the Metro Detroit area.
Now, I need some input on a property I found that has potential and I'm wondering if it's worth it... here's the scenario:
- Duplex near a trendy downtown area (Ferndale, MI) and it's listed for $225,000
- The millage rate for a homestead is 55 and 73 for non-homestead, which would make taxes approximately $6200 (homestead) and $8100 (non-homestead) a year based on selling price divided by 2...I confirmed this pricing with the city.
- I believe each unit is renting for $900 (rentometer indicates average rents for $1150)
- Both units are leased until April 2018, which at that point I have to decide which unit I'd like and if the other tenant would like to renew.
- I haven't seen the inside of the house but I'm not even going to look if the financials don't make any sense...I'm looking to spend about $1000 a month after all expenses are factored in (P&I, Taxes, Insurance, Utilities, Groceries)
- I have an 800+ credit score and my original lease would be at 4.675% since it's an initial investment property...I'd look to refinance 30-60 days after moving in.
Someone, anyone please let me know what else I'm missing and any suggestions you have would be highly appreciated! Would it be a good idea to form an LLC when buying this property as well? I'm thinking that it would be for the sake of liability in case a tenant sues.