Is negative cash flow on an owner occupied property typical?
I am currently stepping into the world of "house hacking" and trying to calculate my potential cash flow on an owner occupied duplex financed through a 203k. I have a list of potential properties that i am going to see but the numbers are not working out how i hoped it would.
In the areas of Baltimore that i am interested in living in, multi family properties are ranging from $100-$150k...(detached with a 2 car garage is what im going for)
So heres a quick break down of an owner occupied duplex:
Gross Potential Income: $13,200/yr ($1,100/mo)
Vacancy @ 8%: $1,056
Repairs @ 8%: $1,056
CapEx @ 5%: $660
Property Tax: $3,600
Insurance: $1,500
Net Operating Income: $5,328
Debt Service ($140,000 @ 5% for 30 years): $9,996
Cash Flow: -$4,668/yr (-$389/mo)
Seeing that I will be using a 203k to rehab the place upfront, am i overestimating my repairs & capex percentages? Would you consider this a poor take on "house hacking"? If i move out and rent the second unit, ill be positively cash flowing...but currently, it looks like ill be taking a small hit every month.
Any input, advice, recommendations will be appreciated.