All Forum Posts by: Sean Hannon

Update: Owner took my offer of 278k, although we still have to perform a home inspection. Also ended up getting paperwork for recent expenses as well! This is in a high appreciating town btw.

Purchase: 278,000 + 10,000+/- closing costs

20% down at 4.5% rate @ 30 years

Expenses:

Taxes: $4100

Insurance: $1200

Gas/common area electric: 2500

Water/Sewer/Trash: 2600

Total rent for 3 units = $3030

Budgeting:

3% vacancy = $90.90

5% repairs = $151.50

5% Capex = $151.50

Ran the numbers on bigger pockets calculator and came out to average $647.57 per month while doing my own property managing. I want to be house hacking so at 2045 total rents and the rest of the numbers staying the same, comes out to -$209.38 monthly. Thoughts?

I'd look to put down 20% so i can have some reserves left for a rainy day. I would also be managing it myself until eventually when i move out of unit #3. Is it normal to still have to pay money when house hacking a triplex?

Hi everyone, long time lurker - 1st time posting

Basically I've been in the market for a few years saving up for a home while living with my parents still - I'm 24 years old. I have around 85k cash in savings for this purchase. My current realtor found a triplex for me and they're asking 282k. 3 Units, all 1Br/1Ba and It's in an appreciating town that I'm happy with the location as i would like to house hack this property (currently off market) Because it's short notice and on holiday, he briefly emailed expenses/rents/etc although i will be getting the full past few years breakdown this week when we meet. Here it goes.

Price:

Asking $282,000

Taxes: $4100

Insurance: $1100

Gas/common area electric: 2500

Water/Sewer: 2500

Trash: $480

Expenses: $10,680

He also explained that there is a clothes washer/dryer in the basement that is shared and it's non-coin operated. I would think about changing that to a coin operated one.

Income:

1st Floor: $985

2nd Floor: $1105

3rd Floor: $940 - I would like to take this one as it's the cheapest and the current renter is month to month.

Gross rental income = $36,360

The property is in overall good shape. I ran numbers using the BiggerPockets Calculator and it ended up being conservatively around a high 9-low 10 cap rate. When I ran the numbers for living in the unit, again using 5% vacancy/5% repairs/5%capEx it came out to me paying average $350 dollars while house hacking unit #3. Am i on the right track here in regards to crunching the right numbers that were given to me? Any feedback is appreciated.