First Time Investor Looking for Numbers Advice
Hello!
This is my first post on the Bigger Pockets Forum, so the usual apologies if I'm posting this to the wrong place.
I'm looking to leave the rental world and start up a "house hack" where I can live in one part of a two-family home and manage the property while tenants help pick up the mortgage payment.
I found a home that's on the upper side of my budget at $149K (my budget being $150K maximum). This place is just a block away from my current rental -- and I absolutely love my neighborhood in Cleveland, Ohio.
I've run the numbers below and am hoping that some might have some advice on if this seems like a smart choice.
HOUSE DETAILS
.07 Acres, Built 1890, Paved Driveway, Asphalt/Fiberlass Roof, Vinyl Exterior,
Unit 1: 650 sqft, 1 bedroom
Unit 2: 1,200 sqft, 2 bedrooms
RUNNING THE NUMBERS
Total Rental Income: $1,900
Total Monthly Expenses: $1,730
Total Monthly Cashflow: $170
COC ROI: 6.1%
The house is in fairly good shape. It's a 2-bedroom first floor and 1-bedroom second floor house. From what I can tell, the most work involved will be sanding and staining the wooden floor in the immediate interior.
Normally, I'd shoot for something in a lower price range ($100-115K). However, the possibility of staying within my neighborhood is incredibly valuable to me. The neighborhood is in a years-strong renaissance with rent amounts rising and new development popping up often.
I hope I've given enough information for some advice. I'd appreciate any info or even something I might be forgetting.
Thanks!