House Hack - should I go for it?
Hello investors! I'm embarking on my first deal! Yay!
A property came up last night...
2 houses on .75 acres. A 3/3 with storage and 2 car garage, and a 1/1 with potential to add a second bedroom.
According to the agent the property is in good shape. Seller just dropped the price $25k. Might be best deal in this shape for under $500k with potential cash flow.
PITI is $2,573. 3/3 house comps rent for $2300-2600. 1/1 house comps rent for $1200.
This is a house hack - no money down (VA loan), so we live in the 1/1 and rent the 3/3. When we rent the 3/3, and live in the 1/1 we will pay out of pocket $575 (after saving &300 per month for capital expenses and potential vacancies). Once both are rented (after 1 year requirement for us to stay there under VA loan), positive cash flow is about $475 (after saving $455 per month for capital expenses and potential vacancies.}
My only hesitations are:
1 - This is my first deal, I'm nervous!
2 - When we get the property, it will be empty. A family is living in it now, and will all move out after closing. That's leaves me to find someone who can pay rent at $2,300 which seems like a lot to me.
Should I go for it? Thanks for the advice!!!!