All Forum Posts by: Jacob Novotny

Hello BiggerPockets, 

I need advice (and a better realtor!)

First time poster. I'm a 25 y/o young investor looking to purchase my first house hack. I've been reading the books, and doing the research, but what I'm reading isn't matching up with what I'm seeing. 

Analyze this deal with me: 

240k purchase price, 2bd 1 ba duplex. ~800 feet per side with a basement. 

My lender came back with a ~$1900 a month mortgage price using a 3.5% down FHA loan.

One side currently rented for ~$950, based on rentometer I'm guessing I can pull around $1100. I believe my interest rate is a 6.25% with no points.

We'd live there for ~a year, then move to buy another house hack and hope to profit from this one. 

Based on the numbers - mortgage (taxes+insurance) alone is ~$1900, potential rental income from both sides is ~$2200, so $300 in "net" (yes, I know I need to put money aside for capex and vacancy and maintenance- I'm a handy guy so hoping to save a bit on that) 

Factoring in maintenance capex vacancy etc. purchasing this property would basically generate little to no profit. (Right?) Problem is, these types of "deals" are ALL I'm seeing. Family, friends, coworkers, basically everyone is telling me that it's not possible to profit on a house hack in this market. We're currently renting and I desperately want to stop throwing my money away. 

My realtor made me sign an exclusive contract that isn't up until July (my mistake) and he's not been the most helpful. He is encouraging me to stretch more to buy properties that are expensive like this where I'd lose money because he's speculating that rates will go down, and keeps telling me to stop reading biggerpockets books (lol). I think he just wants me to buy something and leave him alone. I don't think buying on speculation alone is smart, but I know the housing market is crazy right now.

Can someone give me some advice? I'm looking for what I would need to be considered a good deal (the number where I landed is total rental income-mortgage payment=$500+) and what you all set aside for capex and maintenance in Columbus? I just want a property that can generate me about $300-$500 of *profit* a month, so I can achieve my goals with my wife and eventually start a family.

REALTORS- if you have done house hacking or own a bunch of rental properties let me know! Judging by your response I will likely pick a new realtor for when my contract is up from this forum.

Thanks all!