Memphis Duplex HouseHack analysis (1st Property)
Hello all, I am looking for feedback on my first property. I want to HouseHack a duplex in Memphis, TN. I put down an offer of $114,900 on a 2,500 Sqft duplex(1300sqft 2/1 Downstairs and 1200sqft 2/1 upstairs). The home had a lot of work done on it and a new roof about 5 years ago, so it does not need much immediate work. It needs appliances upstairs and maybe $5000 in work. The downstairs is currently occupied by a husband and wife who are paying $650, but market rent in the area is closer to $750-$850 for that space. The upstairs could rent for $650-$750 if and when I move out. My bank is offering me 100% financing on a 5/1 ARM at 3.55%, which is a whole other discussion on whether i should use that financing. I posted about the financing here: (https://www.biggerpockets.com/forums/49/topics/434...)
Here is a BP Rental Calculator Analysis of the deal if both units are rented out for a total of $1500 - (https://www.biggerpockets.com/calculators/shared/7...)
Let me know if you think this is a decent deal for House Hacking and for my first property. I am going in with a licensed inspector in 2 days to make sure there are no major issues with the home. Any analysis advice or general tips for me?
Most Popular Reply
Like @James Wachob said, jump right in. It's the best way to learn. You will likely be living rent free while gaining equity. You can't beat that. You have probably already considered it but make sure you are comfortable with the current lease agreement. Best of luck, you will do great.