What is your NWROI of your Austin house hacks?

[Conner Olsen]

In The House Hacking Strategy Craig Curelop talks about determining a good house hack deal by using a metric called Net Worth Return On Investment (NWROI). This is calculated using the following equation:

NWROI = (cash flow and rent savings + loan paydown + appreciation) / initial investment
(You can read an article explaining this here: https://www.biggerpockets.com/...)

I'd love to hear what house hackers expected their NWROI to be when they initially purchased a property and what it ended up being. I'm curious to hear both because the massive appreciation has dramatically increased returns.

I bought a duplex in November 2020. I'm living in a 3/2 and renting a 2/1 as a medium-term rental.

Analysis when I purchased the property:

Cash flow and rent savings: -$15,377 cashflow + $18,000 rent savings
Loan paydown: $10,200
Appreciation: $61,674  *This is the total cost to renovate my property. I assumed that it would appreciate according to how much money I put in, I did not factor in any market appreciation.
Initial Investment: $69,000 down payment + $4,654 in furniture for MTR

(-$15,377 + $18,000 + $10,200 + $61,674) / ($69,000 + $4,654) = 58.25% NWROI

Actual returns:

Cash flow and rent savings: -$15,377 cashflow + $18,000 rent savings
Loan paydown: $10,200
Appreciation: $275,000  *This is the current equity I have in the property if I sold today.
Initial Investment: $69,000 down payment + $4,654 in furniture for MTR

(-$15,377 + $18,000 + $10,200 + $275,000) / ($69,000 + $4,654) = 212.69% NWROI

In today's market I think it's important to look at NWROI because the cashflow is harder to come by with the rising prices and interest rates. Does anyone else use NWROI to calculate a good house hack deal?

[Tanner Pile]

Fantastic Breakdown! When are you doing your next house hack?

[Conner Olsen]

@Tanner Pile I purchased my 2nd house hack 2 months ago. It's a SFH and I'm doing live-in then STR. Stinks that I don't have any rental income for it right now, but I'm glad I could use 5% down!