[Calc Review] Help me analyze this deal

Member since 2024 · 2 posts · 0 votes

*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
3w
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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Alex S.
Investor · Washington, US · Member since 2021 · 111 posts · 36 votes
3w
The calculator is only as good as the expense lines you feed it, and the ones people leave thin are capex reserves and vacancy - budget roughly 5-10% of rent for capex plus 5% maintenance and a real vacancy rate for that submarket, not the 5% default. Rerun it with those and see if cash flow survives. Also check that your rent number comes from actual leased comps in the neighborhood rather than the listing's pro forma, since that single input swings the whole return.
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Jimmy Samaha
Staten Island, NY · Member since 2013 · 13 posts · 0 votes
4h
The others covered vacancy/capex. One more thing: the $179/mo is your cash flow after you move out, so when you're living there, you're paying the difference out of pocket. Figure out that monthly number too, because that's the real cost of the first year.
Quick stress test: knock $3,800 rent down 10% (-$380), add 5% vacancy (-$190), and you're about -$390/mo. If that's survivable for you, the deal can still make sense because you're getting in for $5k. If it's not, the margin is too thin. Upstate NY taxes also get reassessed after a sale sometimes, so pull the current tax bill and don't trust the listing's number.
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