All Forum Posts by: Tyler Edens

Little more info:

The basement would be ran as an Air BNB with ~$1800 of income potential with an upstairs roommate paying an aditional ~$1k

Thanks for the suggestion, Jaycee! Here are the key numbers:

• Potential purchase price: Mid-$400k range
• Appraised value: Estimated at ~$500k
• Rehabbed comparable properties (comps): ~$580-600k
• Monthly PITI (with 5% down, including mortgage insurance): ~$3400
• First-year PITI (with 2-1 buydown): ~$2900
• Monthly income (after taxes): ~4-5k
• Living expenses (utilities, groceries, etc.): ~$1600
• Savings available: ~15-20% of the purchase price
  • Cash to close: ~$34k
  • Rehab estimate: ~$34k
  • Remaining reserves: ~$20-25k

To fully fund the rehab, I'd need to come up with an additional ~$15k in the short term, which I anticipate paying back quickly once the rental portion is generating income. I am considering doing this with a 0% APR credit card to avoid a loan.

Hello BP Community!

I've been saving for a house hack over the past two years and recently came across a great property in the Denver metro area that I’d love to pursue. Not only does it have excellent potential as a house hack, but it also offers significant upside for a live-in flip. Even better, I might be able to snag it well under market value since it's an estate sale that's been sitting on the market for nearly 200 days.

Here’s the challenge: while I could afford to purchase the property under market value, I’d be stretching my budget thin to cover the mortgage during the period I’d be remodeling the basement to make it rentable. That said, even with conservative rental income estimates, my living expenses would eventually drop to several hundred dollars less than what I’m currently paying in rent once the house hack starts generating income.

I do have cash reserves to weather some rough patches, but the idea of pushing my budget this hard makes me uneasy. I’m curious: are others who house hack buying homes they can just barely afford, or are you sticking closer to the ~30% housing rule and using house hacking income as an added bonus?

From my perspective, it seems like stretching the budget is almost a necessity to afford a property big enough to house hack in Denver—even with a good job.

Looking forward to hearing your thoughts and experiences!