Under Contract for the first time and feeling nervous/excited!
Can’t help but feel like a complete idiot as a first time buyer in this market but nervous and excited at the same time!
For context, I’ve been actively in the market for a small multifamily for about 7 months now. Been rejected, beat by cash and higher offers a bunch of times. I am now under contract (first time) for a duplex I will be house hacking 7 minutes from a major university on 3 acres. The reason I feel like a sucker, we’re 80k (19%)over asking 🥲. We have some inspections and appraisal contingencies and I’m a little worried the appraisal won’t come through as comps are selling around 12-15% over asking in the area. We have an appraisal gap but I’d rather not have to fork over that capital so I can do some minor remodeling and there’s still a possibility our gap may not be enough. The seller definitely listed low to get a bidding war. Curious on peoples thoughts if I over stretched or if this is a “good enough” deal to get my first house hack in this market.
Numbers for this property:
430k PP for duplex (3/1.5 and 2/1) on 3 acres
Rent for bigger unit= 2500-2800
PITI + PMI = approx. 3500
Maintenance/vacancy/trash etc.= approx. 700
My monthly cost for living in one unit= approx $1800 (which is what I pay to rent right now).
After a year I can rent the other apartment for 2100-2400. Bringing income total to 4600-5200 to cash flow around 800 before doing a hopeful refi if rates drop 🤞🏾.
Any input is greatly appreciated!