FHA the MLS and making the numbers work

[Nick Causa]

Ok, i’ve been looking for a multi-family to house hack for a little more than a year now. Im looking to get into a house closer to work, do an FHA deal, then after a year or so move out and refinance. One problem, the numbers on these houses seem to NEVER work. I know we’re in an expensive area/market but we’ve even tried looking elsewhere (further from work) but then obviously the rents there are cheaper so it doesnt work there either. Heres a place we’re looking at now: Year 1 (us living there) Purchase price: $510k Loan: $492,150 3.5% down payment: $17,850 1 unit income $1700 Taxes: $500/month Insurance $190/month Debt Service: $2552.48 PMI: $479.85 Maintenance: $75 Management $160 (we’ll collect this) Vacancy: $80 (5%) CapEx: $100 Snow/Landscaping: $100 We’ll pay $2388/month to live here taking into account collecting the management fee here Year 2 or 3. We plan to pay down the loan to 80% loan to value refinance out of FHA and rent out the unit we lived in. Im sure the value of the house will change when we refinance, but keeping it simple heres the breakdown Purchase peice $510,000 New Loan: $408,000 Unit 1 income: $1700 Unit 2 income: $1300 Taxes: $500/month Insurance $190/month Debt Service: $2126.04 Maintenance: $75 Management: $300 (i dont want to collect this i would rather pay someone) Vacancy: $150 CapEx: $100 Snow/Landscaping: $100 Cash flow -$516 Am I alotting too much for expenses? Or are there jusu no deals on the MLS? Any help here is appreciated.