Hi, @Laura Jimenez , this might have legs. First off, looks like you're planning to house hack. Do this analysis take into account all 3 units being rented (like it will be after you move out) or just 2? Regardless, you should run it both ways so you know how it will perform when you live there and when it's a pure investment.
Regarding your analysis (I'm assuming $3700 GSR is for all 3 units):
- I worry your rent assumptions might be optimistic. When I look on Zillow, 1beds are ~$1-1.1k, so a studio will be less.
- Vacancy, CapEx and Repairs are a bit high. I usually figure 8% for vacancy and 15% combined for CapEx & Repairs.
- $10k for closing costs is high. Hopefully, you'll be about 1/2 that. Talk with your lender.
- You should have some budget for initial repairs. There's always something!
- Have you actually found a lender with a 3% down loan? I know they're out there, but FHA is 3.5%. If you can avoid FHA and find a product with 3-5%, that's preferable, as PMI will drop once you hit 20% equity. It doesn't with FHA.
- You're forgetting Management (10%). Always include this even if you plan to self-manage in the beginning.
- Plan for water/sewer. Probably $30-40/unit/month. You can call the town water department and get last year's bills.
- Is there any house electric, like hallway lights that you'll be responsible for?
- What about lawn care and snow removal?
- What's the deal with heat? Listing says baseboard electric, but I see hydronic radiators in the pictures. Tenants hate baseboard electric BTW, because it's so expensive to run. If it's normal in your area, not a big deal. If not, could be a competitive disadvantage.
- HW is electric? If it's one unit in the basement, you're likely paying for it.
When I run the numbers (assuming what you're provided is accurate), I think this could still be cash flowing $800/month. You'll probably just about break even if you live in one of the studios.
What's the neighborhood like? Typically deals that cash flow this well are in pretty rough areas.
I think this definitely deserves further investigation. Good luck!
This is really helpful, @Jaysen Medhurst , thanks! I'll do some more digging on the utilities. This is in a good neighborhood, so it definitely warrants further investigation. I really appreciate you taking the time to respond.
@Laura Jimenez , let us know how it goes!