House Hacking Single Family
Hey Guys,
I wanted to see if you guys could let me know if I am doing anything not advised for my first house hack.
I am currently looking at a single family house. It is a 3 Bedroom 2 bath house South of Denver (Columbine Area) for 350k. I was pre-approved for a loan and with all the interest, insurance, and principal the loan will be about 2250 a month. This loan is a conventional loan 3% down and can have the PMI removed after I hit 20%. I want to also do some renovations and make the downstairs basement extra room and turn it into a room by adding a wall and closet. I am estimating 30k for renovations of the whole house and will be 30,000k. The AVR's for a similar 3 bedroom house fully finished is 400k and 4 bedroom around 420k.
I have conducted a dry listing to see if I could get interest and was able to 8 applications in 24 hours before I removed the listing at a rate of 700$ per room. I am employed and can definitely afford the mortgage by myself. I want to get a renovation loan out and fix the place up and potentially turn the garage into an apartment where I live and rent the full house out.
Is there anything I am missing? I am currently paying 700$ in rent. The loan would be 35% of my before tax income and roughly 60% of my after tax, health insurance, and retirement account. I have enough for the down payment and will have at least 3 months of mortgages payments by the time of closing. I know that for a typical rental this would be
Thanks for the help and if you need anymore information I would be glad to provide.