[Calc Review] Help me analyze this deal

1 Reply

Hello all, I am a long-time lurker, but first-time poster. I have been actively listening to the podcasts and trying to home in on how I want to get started in real estate investing. I have recently settled on the House Hacking model and currently have a property pretty much under contract.

So, really the big ask of this post is what do you guys think? I want to get some honest feedback about the property, strategies, and future plans I have for it. I have the analysis linked at the bottom but here is a quick rundown of the property itself.

  • 3-bedroom 2 bath upstairs approximately
    • 1300 sqft
  • Finished basement apartment with 1 bed 1 bath
    • Approximately 700 sqft
  • Additional semi-finished basement space
    • Approximately 600 sqft
  • Built in 1960
  • Good location in West Knoxville TN

The property itself was listed for rent, but after talking to the owner he accepted my offer of $180,000. The loan itself is a government backed conventional (THDA) with a non-interest bearing second of $7500. The second is a forgivable loan after I believe 10 years, but I would more than likely refinance by that point.

The plan of attack was to have me, and my girlfriend live in the basement apartment while renting the upstairs house. The upstairs is fairly nice with hardwood floors, newer appliances, and updated bathrooms. I still have not decided what to do in terms of a rent by the room or a more tradition rent the entire upstairs as one unit. The report below has the numbers ran with what I think I could get if I go by the room. If we were to go the more traditional route the rent would more than likely be closer to just covering the mortgage and I would be paying $250-$300 in reserves to live there.

Long term, the plan for the property would be to convert the additional space in the basement into another finished apartment and create a triplex. I have checked with the county and the property is correctly zoned to be a multifamily dwelling. Based on the calculations below, and what I think we could get, the cash flow would be around $100 per door.

Any and all feedback is welcome and appreciated

Happy Investing!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Let’s get some BPer’s opinions on this man’s property. I’ll refrain as someone that is assisting him in the deal, and he’s already gotten my take on it. I think he has got himself a great property here, and it will cash flow wonderfully post house hack and rehab.