Updated about 3 years ago on . Most recent reply
Duplex for house hack
Hello everyone
I am running numbers on my first duplex which is a house hack but cash on cash return it shows 28% but for 50% rules it shows negative 145.
what are your advice?
Most Popular Reply
First property, duplex, house hacking and you are looking at CoC%, 50% rules ?
My friend, stop whatever you are doing with the CoC%. Don't confuse yourself even more. Where are you at your journey with RE investing, you need to look at how much you are going to decrease the biggest monthly expense and that is housing and at the same time build experience as a landlord. Even better, if you are cash flowing from the other unit and live for free.
Then the 2nd thing you need to look at is when you move out next year and you rent out the unit you lived in, would the property cash flow overall?
That's it, very simple.
My friend, stop whatever you are doing with the CoC%. Don't confuse yourself even more. Where are you at your journey with RE investing, you need to look at how much you are going to decrease the biggest monthly expense and that is housing and at the same time build experience as a landlord. Even better, if you are cash flowing from the other unit and live for free.
Then the 2nd thing you need to look at is when you move out next year and you rent out the unit you lived in, would the property cash flow overall?
That's it, very simple.