When does it make sense: house hack

Question

Zip 37411 near Brainerd tunnels. 3/2

Apartment. separate living space. 2/1

100k purchase Owner finance.

ARV 180k

Rehab costs 35k to 45k

Rent 1100

I’d live in apartment, renters in the main house.

Craig Curelop · Answer

@Kristie Bastnagel - I know nothing about your market. But if your numbers are accurate, they look good. If this is your first deal, just DO IT! Who cares if you break even or even lose a little bit of money? At that point you will have at least experienced buying a property, managing contractors, refinancing the property, and hopefully renting it out.

Let's say worst case scenario is you lose $10k.... a lot of people pay $100k+ to go to college and come out with Art History degrees. There's no better education than experience.

Laura George · Answer

@Kristie Bastnagel

Although I don’t know the details the numbers look good. And seller financing. What do you have to lose??? Go for it!!!

Tyler Bodi · Answer

Hi @Kristie Bastnagel! All house hacks are different and it depends on what you are trying to accomplish. I think a lot of first time house hackers are trying to reduce current housing expenses so if this deal works out to save you money it could be a good idea.

With $35-45K rehab budget sounds like you may have some significant projects to take on. Often time projects can take longer to finish than expected so I would make sure you have enough in reserve for carrying costs while you finish them.

When does it make sense: house hack

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