Updated over 7 years ago on . Most recent reply
House Hacking A Four Plex.
Hi Folks, have have been attempting to get into a house hack for over 18 months. I read Scott trench’s book and want to remove a mortgage payment from my life. I have the opportunity to buy a 4plex in my area.
Here are the Numbers:
$335k asking price.
3 units currently occupied.
Rents are $680 per unit.
Average rents in the area are closer to $750-$800.
I can only do about a 5% down payment on this and have some cash left over to breath with or about 16,000k.
The 1% rule says that rents should be at $837.50 all four units in order to be a good investment. Which will be doable with some minor improvements. The 50% rule is way off because of how little I can put down.
However if I buy this at this price I will only have about $100 to -150$ in profit. It will get rid of my mortgage. But if I have a vacancy I am back to paying a mortgage.
If I can push rents of $795 it will cash flow about $250 a month. Which I would put all of it towards vacancies and capital expenditures and not touch it.
Is this a good deal? I am not a risk adverse person and I am handy and good at managing a current single family home. I think this is my next step but would like to have more input on this.