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Need opinion on my HOUSE HACK- Rental Calculations.
These are my numbers, however, the best thing I believe I got going for me is that I lowered my living expenses. Not sure if it was a cash flowing property after I rent my living quarters.
What do you think.?
@Christopher Veljkovic A few things:
1) $14K in closing costs seems very high for a $320K purchase. Is that an estimation or actual figure?
2) For vacancy, I typically use 5%, however, I have seen other people use 8.33% (vacant one month out of the year).
3) I see you have 1% for Management. I would suggest checking your local market for what the typical PM charges (likely between 7.5% - 10%). Obviously, if you are living in the property you are less likely to need a PM, but eventually you probably won't want to manage the property.
4) Is the $112/month for insurance based on quotes you received? It seems low, but I'm not familiar with the rates in that area.
5) What's the $500/month in Misc. expenses for? I would try breaking that apart and including it in the applicable expense category (PM, CAPEX, Repairs, Vacancy, etc.)
Overall though, I wouldn't be too excited about this property. Even with a househack, you'd still have around $2K a month in expenses that aren't covered (assuming you occupy the cheaper unit). Then, once you move out, you'll likely be just close to breakeven
@Josiah Kay yup these are my actual numbers. The only thing I really got going for myself is forced appreciation after I rehab the place for an ARV of 425k and that I cut some of my prior living expenses to about 50%.
Thank you for taking the time!