Fort Lauderdale Florida · Member since 2019 · 5 posts · 0 votes
Hi all,
I've been reading up on house hacking and I think I found the perfect place! I'm ready to make an offer but I want to make sure these numbers are pretty conservative and that it cash flows when I'm ready to move out in 2-3 years. Let me know if there is something I'm missing in the analysis and if this looks like an alright first deal. Any input is appreciated
@Madeline O. My area a PM will be 10-12% for a duplex after counting all fees. I like 8% vacancy 1 month per 12 month rental. Decent budget for CAPEX and repairs of $4800 per year, might up that a little. I don't see anything for grounds maintenance. 3.71% cash on cash is low but grows nicely.
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
7y
@Madeline O., you mentioned that you're house-hacking. The rent in your analysis is that for 1 unit or both? I assume it's both at that price, which means you'll be living for ~$1500 (plus utilities).
I agree with @Tim Herman's points. Bump up vacancy, management, and repairs/CapEx, add in landscaping.
Assuming your ARV is accurate, it may be a good idea to consider a refi after renovation. Your P&I will go up less than what you're paying in PMI and you'll be able to recover some of the money you put into the reno.
$8100 in closing costs looks very high. 2X or more what I'd expect.