House Hack Deal

[Boddupalli Sai Praneeth]

Hey everyone,

This is my first property ever and I am in Canada. Currently, I'm paying $1200 in rent. I'm considering a house hack deal in a large metro city. It is a brand-new townhouse which has 5-bed/3.5-bath and my plan is to live in the master bedroom (rest all rooms are considerably smaller and do not have attached washrooms) I want to rent out each private room to a single person while each full bathroom would be shared by two tenants. I am considering to rent the 4 bedrooms for an average of $600 each. The kitchen is in sharing and has a dining space for 6-8 people also enough cabinets for all.

Here are the numbers:

• Purchase Price: $340,000
• Interest Rate: 3.99%
• Down Payment: 5%

Expenses:

• Mortgage: $1,599
• Property Tax: $366
• condo fee: 200
• Insurance: $60
• Utilities (not paid by tenant): $150
• Maintenance & CapEx (5%): $114
• Vacancy (5%): $114
• Total expenses: 2603
• Total Income: $2400

       Cashflow: -$203 (I am no longer paying $1200 in rent, should I be happy that I am actually saving $1000)

when I move out I can charge $1000 for the master bedroom. Then my cashflow would be around $800. Is it a good deal?

Can any of you experts suggest?

[Aaron Zimmerman]

I'm not sure of the market but insurance at $60 feels low even if brand new. 

I would add in property management to your numbers to be conservative. You will probably also want to have some sort of cleaning crew come in monthly to ensure all the common areas are tidy too. Even with that, this seems like a big win. Interest rate seems great but the 5 year concerns me a bit but hopefully you can pay some $$ down in the first 5 years