Updated almost 6 years ago on . Most recent reply
First purchase review
Hi! I have a property that I found via wholesale postcards, but I think I want to make this one my own deal for a few reasons.
1. I want to move out of my parents house
2. It seems like an amazing deal to start with, lots of instant equity and doesn't need too much work.
Some details, located in Northern Kentucky in a pretty good area.
Price is 70k
ARV is 125k
I estimate about 15k in repairs/rehab
Market rent is around $900-$1,000/mo
My plan is to get a 203k, and live in it for atleast a year and fix it up over time.
I would also be renting out the 2 extra bedrooms for probably around $300-$350/mo
Assuming I get a $85,000 203k loan, the payment would be right at $400/mo plus another $160/mo for taxes and insurance. If I split utilities I would then have another $72/mo for that.
Totalling to $624/mo
Assuming I got $600/mo for rent , I would only be out of pocket around $25/mo and I'm totally cool with that .
Just want to get some feedback, what do you think?? Seem like a good first home purchase?
Most Popular Reply
Hi @Austin Eschan - Greetings from Lexington, KY. Do you have a contractor lined up that is experienced with the 203K program? 203K's are great in theory, but there are a lot of steps that you need to line up to make it work. I got my start house hacking a multi-family home. I used a FHA mortgage and put 3.5% down while living in one unit and renting the top two. I used the rent money that I was collecting to make improvements and later did a cash out refinance to purchase my next property. Could be something to consider as well. Good luck to you and Go Cats!