[Deal Analysis Help] House Hacking a Duplex
Hi BP Friends/Family,
My husband and I are new to REI and we're looking for some help on analyzing a potential deal. The strategy is to house hack using his VA benefits. We plan to live in the duplex for 1 year and exit as soon as possible so that we can turn it into a complete rental. The analysis I did below highlights the cashflow potential once it's fully rented.
There is already a tenate living on one side and pays $1700/mo. Same tenate living there for 3 years now so I'm hoping she'll stay. I ran numbers for market rents for the area on Rentometer and the median rent is $2010. Therefore I'll be raising the rent once the tenate's lease ends May of 2021. I'm thinking of renting the side we'll be living in starting at $1850 possibly.
The numbers in the cells are actuals and not estimates except for Vacancy, Maint/Repair, & Capex. In case there is a question as to why my closing cost is so high it's because of the VA Funding Fee ($8621) which I wrapped into the loan. Please review and share your thoughts with me as this is our first deal and I've been going back and forth on weather we are getting ourselves into a good deal or in trouble.
