[Calc Review] Help me analyze this deal

8 Replies

I am looking at this duplex as my first investment. I am thinking about house-hacking. If i house- hack do i have add my rent payment into the equation when analyzing the deal? or i I just plug in the one rent for the one unit? 

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This looks good! Is this based on both units rented or just 1 unit rented?

You might consider putting less money down and keeping it as cash reserves instead. I put 20% down, and now I wish I'd kept it as reserves instead, because once you get a tenant in the other unit, your cash reserves are stabilized and you can build that into a down payment for a next property!

Run the numbers both ways! Then you'll know the numbers for when you're living there, and you'll know the numbers for after you move out.

Both will be relevant, and you'll want to know how it'll look when you're there, and you'll also want know how it'll look once you've moved out!

@Clark Kirkpatrick I ran it both ways, but when i analyzed it with just one tenant paying the rent, the deal does not look good, but when I calculate 2 tenants the obviously the deal looks good. So, does that mean that is not a good deal? I mean, i feel like it's always going to look like less cash flow when I analyze with me living in one of the properties? But, i will be making payments towards the mortgage as well, so shouldn't that still be a good investment?



@Vanessa Carvajal You'll always get less rent per month if you're living in one of the units. What you're saying is basically correct - while you're living there, it might not cashflow but your living expenses will be much cheaper. Once you move out, it will cashflow. 

So it's good in both cases - reducing your expenses in the short term and giving you cashflow in the long term!