Howdy @Jason Toledo
You did a good job analyzing this deal. I'm sure you realized it would not work with the asking price. Using the Owner Occupy (House Hack) strategy gets you into properties with the least possible cash. However, it does tend to increase other financing costs like P&I, due to larger loan amount, and the PMI requirement. Would you be willing to accept such low Cash Flow once you move out? How long would you plan on living there? Is the property located in an area that regularly floods?
Howdy @John Leavelle thanks for taking a look at this. I was trying to make the numbers work as much as I could with the numbers they were wanting, but was not able to; the area does not regularly flood either. I'm not okay with the low cash flow, but I did see that the property has a big lot, which another house could be built on potentially in the future. Just called another insurance company to see if the flood and home owners policy numbers can come down some; that may increase cash flow a bit. Thanks for the comment!
If you were to proceed you would need to check zoning to see if building another residence is authorized. I purchased a Duplex on a very large lot. Fortunately, they were willing to make an adjustment to allow me to build more on the lot. I've added a 4-Plex and contemplating adding one more. Many areas are difficult to have zoning changed.
good luck @Jason Toledo
Hate it when that happens.
@John Leavelle great advice, I'll look into that, thanks!