All Forum Posts by: Alexander John Schmitt
Alexander John Schmitt has started 1 posts and replied 3 times.
Post: Am I Thinking About This House Hack the Right Way?
- Posts 3
- Votes 1
Quote from @Aaron Zimmerman:
For the house hack, you want to make sure it cash flows after move out. If it doesnt, it's not a good deal.
other than that, you're on the right track! I'd even encourage you to go to 3 or 4 units if you can and you'll have more rents coming in that way
How will I know if it will cash flow after I move out? Should I use an estimate of future rents or current rents right now? If it would not even cash flow right now without me living it could it be a dumb purchase?
Thanks!
Post: Am I Thinking About This House Hack the Right Way?
- Posts 3
- Votes 1
Quote from @Chris Seveney:
Quote from @Alexander John Schmitt:
Hey everyone,
I’m 23, working full-time, and looking to house hack my first property in Fayetteville, Arkansas. I’ve already been pre-approved and am actively looking at duplexes.
Here’s my one non-negotiable: I don’t want to pay more monthly than my tenant
In other words, if I live in one unit and rent the other, my out-of-pocket housing cost should be equal to or less than what my tenant pays. I understand I’ll take on risk (mortgage, maintenance, etc.), but I’m okay with that if the numbers work.
So far, I’ve identified a couple of properties in the $310K–$325K range that could work if I negotiate them down. I'm running the math carefully using FHA loan terms (~6.75%, 3.5% down), and I'm trying not to let emotion get in the way. If it doesn't beat my tenant's rent, I walk.
My plan is:
-
Find 3–5 good properties.
-
Run the numbers.
-
Offer only if it meets my criteria.
-
Stick to my numbers — no budging.
Does this approach make sense? Would love feedback from those who’ve walked this road already.
Thanks in advance!
why is it so important to beat your tenants rent? If the numbers make sense and look good and you are paying down a property and its cheaper than what you could rent for then why not pull the trigger? Keep emotions out of it and focus on numbers.
If it cheaper than what I could rent for would I not be beating my tenant's rent? That is why it is so important. Chris the way I think about this logically and without emotion is that the person next to me is living in the exact same unit as me and renting which is a perfect comparison to what a comparable rent would be for the exact same living conditions. I do understand that I am paying down a property, but I am also taking on all the risk. I am curious what other numbers you would look at and how much you would be willing to pay more than just renting a cheap apartment with roommates. Thanks for responding!
Post: Am I Thinking About This House Hack the Right Way?
- Posts 3
- Votes 1
Hey everyone,
I’m 23, working full-time, and looking to house hack my first property in Fayetteville, Arkansas. I’ve already been pre-approved and am actively looking at duplexes.
Here’s my one non-negotiable: I don’t want to pay more monthly than my tenant
In other words, if I live in one unit and rent the other, my out-of-pocket housing cost should be equal to or less than what my tenant pays. I understand I’ll take on risk (mortgage, maintenance, etc.), but I’m okay with that if the numbers work.
So far, I’ve identified a couple of properties in the $310K–$325K range that could work if I negotiate them down. I'm running the math carefully using FHA loan terms (~6.75%, 3.5% down), and I'm trying not to let emotion get in the way. If it doesn't beat my tenant's rent, I walk.
My plan is:
-
Find 3–5 good properties.
-
Run the numbers.
-
Offer only if it meets my criteria.
-
Stick to my numbers — no budging.
Does this approach make sense? Would love feedback from those who’ve walked this road already.
Thanks in advance!