Want to do my first house hack with FHA mortgage
Hello fellow investors, I currently reside in Phoenix, AZ, and I am a full time college student/part time worker looking for some advice and/or feedback.
I am 19 years old and I am looking to save up capital 12-14 months from now (around 10-15k) while also working on my credit score to qualify for an FHA Mortgage.
I have a couple questions, and any advice or feedback is very well appreciated;
SFH in Phoenix, from what I've researched, run around 200-300k assuming they're 3+ bedrooms and 1400-1800 sq ft, which is quite expensive considering my current financial situation. I have been doing an extensive amount of research these past 2 months and I think the way for me to get my feet wet is to build up enough capital to pursue my first purchase with an FHA mortgage as I've stated above. I am not sure if I am running the numbers wrong or if I'm missing out on other major expenses, but these are the deals I am looking forward to next year;
Buy a 5 bedroom SFH in a B class neighborhood and rent out 4 other bedrooms while I live in one. Assuming this SFH cost 260-275k, (I know very unlikely, but I have seen a couple) and renting out each room at 500$ a month, would I be breaking even, or going negative? I've been looking at the numbers and I'm assuming I would be breaking even considering my monthly cost would be around 2k a month (including insurance, mortgage insurance, taxes, and monthly principal)
I currently pay around 660-675 a month in rent for student apartments, but I wouldn’t mind using my own money if it means I would be building equity rather than wasting my money.