Analyzing a houehack for now and later.

[Anthony Warren]

When purchasing a house hack do you run the numbers in the instances of being an occupant and later when you plan to leave the property? Also since I am deployed I am looking at mainly properties on MLS. What I'm seeing when I run the numbers on the BP rental tool is that most properties I would have to purchase at 65-70 percent of the retail value to cashflow. The cash on cash ROI is usually pretty high, typically between 16-22 percent but the cashflow really is only around $150-$200 per month. What are others shooting for as far as monthly cashflow? I know markets dictate but I'd love to hear some expert opinions. Also What are most people using to find accurate property ARV's? Im a little leery with trusting zillow. Thanks everyone and I look forward to hearing any advice!

cheers, 

Anthony Warren

[Nathan Platter]

Hi @Anthony Warren ,

First off, thank you for your service.

When we bought our first property (owner-occupied duplex, through a realtor) we wanted to live in a nicer neighborhood. Nicer neighborhoods are more expensive, and the only cashflowing duplexes within 20 miles were in not-so-desirable parts of town. 

We changed our strategy and instead chose to make our profits from Appreciation, not cashflow. Appreciation isn't as predictable as cashflow, but then we got to live in a very desirable area. Our tenants' covered 60% PITI, meaning we paid 40% out of pocket but got to live in a great area.

Our gamble paid off and sold for 20% more than we bought 2 years prior. Those types of gains are an anomaly, but the principle still applies.

Excited to hear what you take action on!