[Calc Review] Help me analyze this deal
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hello everyone, looking for a little help looking at this deal. Will be kind of confusing so I will do my best to explain. This is a 4 family in north Jersey. What I am try to decide is if I should house hack this and rent out my current residence or strictly use it as rental.
If I house hack I can put 5 percent down as shown in calculator. With this method the property will bring in $4500 in rent ( technicallly would be negative cash flow, but then my primary residence now that I would then rent out would cash flow $1500 to offset that. Then when I move out in a year or two it will rent for $6000. Perks of this method is obviously a small down payment.
Option two would be a DSCR loan with 25 percent down. $40k coming from my own money and then the other $95k coming from a HELOC on my primary residence. The property would rent for $6000 and cash flow around $1650.
My question is is it worth it to live in it for a year for the low initial entry cost or should I use the DSCR loan and then use the income to pay back the HELOC. Down side of that I wouldn’t see any cash flow from that then for 6-7 years.
thanks for your help. Please ask if you need more info.