House-Hacking Question

[Aron Roytenberg]

Hello everyone,

As a young/new real estate investor, I would be looking to house-hack my first property. However, I have a question when it comes to analyzing cash flow while house-hacking. 

For example: If I were to buy a duplex (Each side 2 bed, 1 Bath) (One side Unit A, the other Unit B) and rent out Unit A completely (For $1000) and rent out the other room in Unit B ($500) would my monthly income just look like:

Unit A: $1000

Unit B: $500.

Or do I need to account for me living in the unit when calculating the monthly income?

Thank you for your help! 

[Tim Porsche]

Calculate the cash flow and expenses as if you were buying the property and intended to rent out both units. See if it is a good deal or not, figure out what your cash on cash returns would be after including all debt servicing, fixed costs, an allowance for maintenance\repairs, capex, and vacancy. If it's a good deal after figuring all that out, it will still be a good deal if you are living in one unit and renting the other. The difference is instead of the money being paid in the form of positive cash flow, it will be paid in the form of cash savings (you live rent free or almost rent free).