All Forum Posts by: Daniel Hughes

I'm interested in this as well. @Brian Tran I see that you posted this 5mo ago. Did you have any success finding the answer to your question?

What do you budget for Homeowner's/Landlord's insurance in OKC? I've been running an analysis on a few duplexes for house hacking, but I can't find anything that works. I'm using $2,900/yr or $242/mo because that's what Geico quoted me for one of the properties I was looking at, but I'm wondering if maybe I'm using too high of a number?

Update looks slick. Thanks Mindy!

 Hey Kiera. What is the market like when it comes to 2-4 units? Are they scarce or is house hacking a good strategy there?

 You should really be making this its own post to avoid derailing the conversation of this thread.

Edit: Didn't see how old this thread was when I made this reply. Apologies.

@Christopher Powers from what it sounds like, your monthly tax figures were off by more than $1100/mo? Is that correct?

 Hey @Pamela Sandberg, what do you mean by a casita house hack? A separate casita on the same property maybe?

I meant to write "If the Self-Sufficiency Rental Income is greater than your PITI, then the resulting decimal will be less than 1."

Based on what you've written, I don't think it's necessarily the other 3 units. The Net Self-Sufficiency Rental Income is the appraiser's estimate of Fair Market Rents from all units, including the unit the Borrower chooses for occupancy minus an amount for vacancies and maintenance (either an estimate by the appraiser or 25% of the fair market rent, whichever is higher).

I don't think it says that. From what you've written, it sounds like the PITI divided by the Net Self-Sufficiency Rental Income cannot exceed 100%. That is to say, PITI / Net Self-Sufficiency Rental Income <= 1.0. From what you wrote, it sounds like you are saying the rental income from 3/4 units in a quad can't be greater than PITI. That is to say, PITI / (0.75 * Total Rental Income) <= 1.0. I don't understand that to be the case from what you've written. Also, I think what it's saying is that your Net Self-Sufficiency Rental Income must be greater than your PITI. This is because if the PITI is greater than the Self-Sufficiency Rental Income, then the resulting decimal will be greater than 1. If the Self-Sufficiency Rental Income is less than your PITI, then the resulting decimal will be less than 1.

Examples (fictional numbers to demonstrate):

Net Self-Sufficiency Rental Income < PITI

PITI = $1000/mo

Net Self-Sufficiency Rental Income = $500/mo

PITI / Net Self-Sufficiency Rental Income = 1000 / 500 = 2.0 = 200% (Not Allowed)

Net Self-Sufficiency Rental Income > PITI

PITI = $1000/mo

Net Self-Sufficiency Rental Income = $1500/mo

PITI / Net Self-Sufficiency Rental Income = 1000 / 1500 = 0.67 = 67% (Allowed)

Are you saying that the total payment on the mortgage (PITI) is determined by the appraiser? If so, that's not what I understood from what you wrote. The appraiser determines the Net Self-Sufficiency Rental Income (from determining the fair market rent from all units and estimated vacancies and maintenance), not the PITI. You could be referring to the Net Self-Sufficiency Rental Income, but it's not clear to me. My apologies if I misinterpreted what you wrote.

I've never heard about this before. Where did you get this information? It's important information to be aware of as a first-time investor.

You make it sound like this measurement (PITI / Net Self-Sufficiency Rental Income) will limit what rent you can receive from a triplex or quad, but it sounds more like a measurement to ensure that the income the property generates can cover the mortgage payment and then some.

@Albert L. what do you use for past/current job growth? I've been looking at bls.gov to find civilian labor force numbers, but I'm not sure if that's the best way?