Input on a house hack/future rental property
Your thoughts and input. Please and thank you.
I live in Woodstock, Georgia.
There’s a five bed three bath single-family house that can be converted into an up down duplex. In addition there is a large two car garage. The sq feet is from 2500-3000 based on tax records and different listings.
The upstairs has three beds two baths with a lot of space and has a washer/dryer and all of the appliances. It is selling for 325,000.
The downstairs is an Inlaw suite that has two good sized bedrooms and a really nice rock tiled bathroom. It has a kitchen that’s already set up, a living room, and has access to the outside. All the rooms have windows. It is also connected to the garage.
We are looking at a conventional loan, 5% down, and a 2.625% rate. There would be about $100 in PMI extra a month unless I went with navy federal since they match %'s but I hate just getting a rate from someone just to use them. The taxes are $2500 a year and the insurance to cover the house would be around $2000.
Checking out the rental prices from Zillow, rent-o-meter, and other sites it says that the max price would be $2200 to rent out the entire house as a whole. I could probably rent out the downstairs for 1000-1200 and the upstairs from 1200-1600 if I rented them out separately. There is enough driveway space to give everyone their own parking space.
The catch is if my fiancé and I get the house we have to live in a beautiful place and pay 300-500 to cover the mortgage until we can move out and rent the upstairs. We can afford it ourselfs but I want to turn it into a rental in the future and a house hack for now.
What are your thoughts?