*This link comes directly from our calculators, based on information input by the member who posted.
I would plan to house hack this duplex for one year and then move out and convert to long term rental. I understand the cash flow and cash on cash returns aren’t very high at first on this deal. However, I am wondering if this is what a good deal looks like in today’s current market around 1 hour south of DFW. I would be co borrowing with my brother and we have preapproval and the property was listed at 375k and had a sellers appraisal done at 377k but I am thinking of offering 355k and we cover closing costs. Let me know what you think. This is the only duplex in the area that I would be willing to move into right now so if this doesn’t work I would probably try to house hack a single family home.
*This link comes directly from our calculators, based on information input by the member who posted.
I would plan to house hack this duplex for one year and then move out and convert to long term rental. I understand the cash flow and cash on cash returns aren’t very high at first on this deal. However, I am wondering if this is what a good deal looks like in today’s current market around 1 hour south of DFW. I would be co borrowing with my brother and we have preapproval and the property was listed at 375k and had a sellers appraisal done at 377k but I am thinking of offering 355k and we cover closing costs. Let me know what you think. This is the only duplex in the area that I would be willing to move into right now so if this doesn’t work I would probably try to house hack a single family home.
Hey @Jonathan Showalter! What would you (and your brother) consider to be a good return over 5 years?
Investor · Miami, FL · Member since 2023 · 91 posts · 28 votes
1mo
Jonathan, solid instinct to run it, and for a house hack this isn't a bad entry, but the report is hiding the real question because it's modeling both units rented at 0% management.
Two ways to read it:
- Year 1, you living in one side: the honest number is your housing cost. Take the $3,380 of total expense minus what the OTHER unit rents for, and that's what it costs you to live there. If that's well under what you'd pay to rent a comparable place, you're winning even at "$19 cash flow," because the alternative was paying full rent for nothing.
- After you move out (your actual plan): this is the go/no-go, and here's the catch. It pencils at +$19 only because management is set to 0%. Put in a real 8-10% ($270-340/mo) for when you're not self-managing, and it's more like -$250 to -$320/mo as a straight rental. So the "convert to long-term rental" plan loses money unless rents grow into it or you self-manage forever. Underwrite that moved-out number with real management before you commit, because that's the version you live with for years.
On the offer: $355k against a seller-ordered $377k appraisal is fine, but that appraisal isn't gospel, it's the seller's. Price off recent duplex comps instead, and an hour south of DFW right now there's a fair amount of supply, so you may have more room than the list implies. Just know your leverage is limited since you've said it's the only one you'd move into. And I wouldn't underwrite any appreciation into this, DFW has been flat-to-soft, so let it stand on the numbers.
What does the other unit rent for as-is, and what would you pay to rent a comparable place right now? Those two decide whether this is a smart house hack or a rental that bleeds when you leave. Happy to run the moved-out scenario with real management if you drop the per-unit rents.
Rental Property Investor · San Francisco Bay Area · Member since 2026 · 5 posts · 1 vote
1mo
Hi @Jonathan Showalter, I would recommend pressure-testing year two rather than year one: full debt service once you move out, vacancy/CapEx/management carried on both doors, and whether $355K actually pencils against real rent comps.
Investor · Washington, US · Member since 2021 · 58 posts · 12 votes
1d
Hard to sanity-check this without the purchase price, the two unit rents, and your loan terms, since the appraised 377k only affects equity and a future refi, not the returns. The fast filter is total monthly rent divided by purchase price: if that's under roughly 0.8%, weak cash-on-cash is baked in and tweaking the other line items won't rescue it. If you're counting on it improving later, write down the exact rent and year that makes it pencil, then check that number against actual comp rents instead of a flat growth assumption.
Investor · Forth Worth, TX · Member since 2026 · 1 post · 0 votes
21h
As far as whether this is a good deal for the area an hour south of DFW. It kinda depends on the specific submarket. I'd recomend pullin recent sold comps for duplexes nearby and checkin what cap rates local investors is actually gettin, If the area is mostly a appreciation play rather than a cash flow play thats a diffrent risk profile you gotta be comfortable with.