*This link comes directly from roughly calculating a home I am under contract on.
I plan to live here and rent out the rooms using my VA loan as a first home purchase. However, I am having trouble deciding on rent to charge and responsibilities placed on tenants. Any comments are appreciated. "Feedback is a gift."
@Austin Takeda looking at the report you ran, I think some of your parameters are set wrong. You said you're wanting to use a VA loan but the report shows you only financing $12,500, which is why your mortgage payment is only $51 but the cash you must pay at closing is $237,503. I'm guessing you meant that to be a 5% downpayment in cash and financing the other 95%. That's going to increase your expenses dramatically. Additionally, if you're living there, and therefore paying the utilities yourself you need to include those, right now your fixed expenses are $0. Also you are probably light on Vacancy and CapX expenses, Vacancy is usually set at 8% since that gives you one month set aside for every year the renters stay (1/12 = 8.333%) and CapX is normally around 10% of rent. Also, if you are living there and just renting out rooms why do you need a management company? You should be able to self manage and save yourself the cost.
Regarding rents in the area, I'd use the website rentometer.com or something similar, they can get you a fair estimate of what you could charge.
@Kevin S. Thank you Kevin! Yes I am seeing I put in the wrong parameters. Thank you for the percents though I will change it to those. Inevitably I will be moving out close to the end of this year and found a manager at 8% monthly, 50% first month rent for new tenants. For now you are correct I will be managing it until I need to leave. It is a $0 down VA loan property. The BP rent data for the area says median rent in the zip code is $2,200 but I would be happy getting $2,000. It has a master with personal bath and then 3 rooms all sharing another. That is a squeeze in my opinion for renters that could be military in the area so still wondering if something like just $500 per room plus utilities sounds fair and competitive to the local area. Hence the $0 utilities but you are correct when I move in it will just be me.
Here is a more accurate description of what I think this will look like then.