All Forum Posts by: Christian Villanueva

@Charles Long Awesome, you give me hope that there house hacking in Houston is possible! You bring lots of good points. All bills paid is something i didn't consider, will add more costs to my monthly expenses but that should be fine. Yes the apartments start at $700 and are definitely not the nicest. Also, fully furnishing isn't something I considered as well. Thank you very much for your response, it is greatly appreciated!

@Austin Smither Langley

Yup, at best. Unless you plan to move out of the home eventually but even then it's not, in my opinion, a good investment. Thank you for your help! I'll be doing more analysis of house hack analysis if you want to follow! :) look forward to seeing you around.

@Austin Smither Langley

Hey, thanks for the response. I'll respond on here in case any other members want to dig into the analysis. I did account for vacancies. It is under the "Monthly expenses" Section as $35. However, I noticed I made a mistake in only accounting for $700 instead of $1,400. I am doing a vacancy rate of 5% (which I'm not sure where to get a solid % from) so instead of $35 that I have, it should have been $70.

As for anticipated rent, yes I agree with you that it wouldn't be wise to assume $700. In your opinion, what rental price would you assume? I looked around on craigslist and local apartments. For homes, I saw people offering rooms at about $575. As for apartments, 1 bedroom apartments seem to start at about $700

Hey fellow BP members, I want to concentrate on analyzing house hack rental properties. I am in the Houston area and house hacking appears to be pretty hard over here. Well, irregardless Let's get to this house hack analysis, I want to be a pro at this and right now I'm a novice. I'll be pumping these analysis out pretty frequently so if you want to get better with me, then embark in this journey with me. Well, let's get to it. 

I'll be using the 4-square method and an FHA loan at 3.5% down. Below is the numbers for the house 13107 Garlenda Ln Houston, TX 77034. Built 2004 and is a 3/2 Single Family. Doesn't appear to have major defects, and I can probably rent out 2 rooms at $700 . What on this have I messed up at or what suggestions do y'all have?

@James Call Thank you sir for taking time out of your day to help me with this. Well to be honest I'm not sure how to make ANYTHING cash flow, it send like I need $2,000 from my tenants if I want to even be a little negative and I'm not sure it's remotely possible to do that. I'm stuck if I'm being honest.

@James Stinnett Too detailed?? No such thing sir, I greatly appreciate the feedback. I'm going to have to sit down and analyze everything you're saying but the more information I have the better!

Hello, this is now my second analysis with a house hack, I'm needing a lot of help please. I've added my own mortgage calculation as I like to just plug in the value of the home and get the automatic change instead of having to come over to the BP Mortgage calculator to do so. The calculation comes with the same number so that's good. So what I'm needing hep on.. well multiple things. As I found out on my last analysis by a fellow BP member. Property taxes are 3% of my appraisal value... I gotta be honest I'm not entirely sure what that means but I've plugged that into my monthly taxes anyway. This eats up A LOT of these expenses. The home I'm analyzing now is 1235 Plantation Dr, Dickinson, Tx 77539 (Last time I tried to link to something it didn't work so I apologize if this one doesn't either) What I'll be looking for when I'm actually in the market is something cheaper (hopefully with built in equity) with a mother in law suite that I can live in while I rent out the main household. But just for analysis purposes and so you guys can hopefully help me we're going with this one. Here are my numbers I tried to link to my direct excel sheet last post but it wasn't working so I'm just going to copy and paste.

Property Type: Single Family 4 bed 3 Bathroom						Mortgage Calculation
Property Price	$ 180,000.00					Loan Amount	$ 173,700.00
Down Payment of 3.5%	$ 6,300.00					Interest Rate	5%
Loan	$ 173,700.00					Loan Length (years)	30
Rental Income	$ 1,500.00	Cash Flow				Payments per year	12
		Out of pocket	$ 1,172.46			Total number of payments	360
		Tenants Rent	$ 1,500.00			payment per period	$932.46
Monthly Expenses		Cash On Cash Return				Monthy Payment with Tax	$1,497.46
Taxes	$ 450.00	Down Payment	$ 6,300.00			sum of payments	$335,685.30
Insurance	$ 115.00	Closing Cost	$ 3,000.00			Interest Cost	$161,985.30
Electric	$ 100.00	Rehab Budget	$ 7,000.00
Water	$ 70.00	Total Investment	$ 16,300.00
Gas	$ 50.00
HOA	$ -
Lawn	$ 25.00
Vacancy	$ 100.00
Repairs	$ 50.00
Mortgage Insurance	$ 115.00
Capx	$ 100.00
Mortgage	$ 1,497.46
Total Monthly Expenses	$ 2,672.46

 @Eric Phillips:

Thanks for the reply! And apparently I keep being conservative with my numbers, hm. Thank you, I'll keep that in mind!

@Whitney Breedlove Wow, well like I said I am completely new to everything real estate and I took the taxes from a couple different people and sort of just averaged it out to that number. I never knew it'd be that high! So thanks for the insight on that. But that's okay I can work with this.. hopefully I'm not necessarily going for a $200k house, just looking more or less on how to properly analyze a deal. Also, I'm sorry I wasn't clear on my current living expenses. I rent out my current home with my two brothers and I pay $350 in rent (excluding utilities) so I average out to $450 a month. So regardless my current living expenses will be much lower than any house hack I think that I will find here but the point for me to house hack is to begin real estate investing. Though with that I would still would much rather find a good deal that keeps my expenses much closer to my current living expenses if not beat them. I've plugged in the new number you gave me for taxes which is 475 per month (wow) to my formula and my numbers are as follows. I put the changes to my previous formula as a bold font.

Property Type : Single Family 3 bed 2 Bath.

Property Price: $200,000

Down Payment of 5% at $10,000

Loan of $190,000 at 5% interest rate

                         Expenses

Taxes $475

Insurance $ 115

Electric $ 100

Water $ 70

Gas $ 50

HOA $ 0

Lawn $ 25

Vacancy $ 100

Repairs $ 50

Capx $ 100

Mortgage $ 1284.96

Total Monthly Expenses $2,369.96

                 "Cash Flow" (Didn't know what to title this section)

Out of pocket $1,069.96

Tenants Rent : $1300

Cash on Cash Return (This is the main part I need help with)

Down Payment $10,000

Closing Cost $3,000

Rehab Budget $7,000

Total Investment : $20,000

I messed up on the "expenses" section but not with the numbers just a typo, sorry!