[Calc Review] Help me analyze this deal

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[Calc Review] Help me analyze this deal

Bryce WalkerPro Member
Member since 2024 · 2 posts · 0 votes

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*This link comes directly from our calculators, based on information input by the member who posted. This is a house hack in upstate NY in Schenectady county using my VA I’m only putting around $5000 towards closing costs I think it seems like a good deal considering after a year it will cash flow when I move out with barely any money out of pocket. 

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    18h

    Bryce, I’d be careful calling this a good deal based on the calculator alone.

    The $5,000 cash-to-close is obviously attractive with the VA financing, but the number that jumps out to me is the projected $179/month cash flow. That doesn't leave much room for repairs, higher utilities, turnover, unexpected CapEx, or any underwriting assumption being slightly off.

    I'd also double-check the $3,800 rental-income assumption. Since this is a house hack and you'll be occupying part of the property, make sure the calculator is only counting rent you can actually collect while satisfying the VA occupancy requirement—not income from the unit you'll be living in.

    I'd stress-test it with lower rents, higher vacancy, maintenance/CapEx, and a realistic reserve. If the deal only works under the best-case assumptions, the low cash out of pocket can make it look stronger than it really is.

    From the tax side, remember that because this will be partly personal-use and partly rental, expenses and depreciation generally need to be allocated between the portion you occupy and the portion held for rent.

    Feel free to DM me, I’d be happy to send over our Turn Key Rental Analyzer so you can compare the deal under more conservative assumptions before you move forward.

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