House Hack Questions NJ

[Jennifer M.]

Hello,

I am running an analysis on a property I am looking to House Hack in the Morristown area. I have attached the link for the property and my analysis. I would like to see if I am way off base with my analysis. Any feedback would be helpful.

Purchase price: $425,000 2fmy,separate utilities (need to confirm comps)

Financing: FHA loan 3.5% down $14,875

Closing costs (not sure which % to use I hear 2-6%): 6% $25,500

Rehab Reserve if needed: $10,000

Total cash in: $50,357

Est. Rent for tenant: $2,600 (I see 2500-2700 for 3br rentals)

Tax: $850 per month (10k per year)

PMI: $352 per month

Lawn/Snow removal: $100 per month (over estimating)

Vacancy 10%: $260 per month

Repairs 10% (5% Cap Ex 5% Repairs): $260 per month

Insurance: $166 per month (2k per year?)

Total Expenses: $1,988

Mortgage & Interest $2039 per month

NOI: $2600-$1988= $611

$2039-$611=$1428

So my "rent" would be $1428 to cover the mortgage.

Live here for two years , refi then rent out the other unit for what I hope to be a cash flowing property. My numbers there show $400 cash flow, 7% Cap Rate and a COC 9% (with the same rent for both units).

Any feed back would be amazing, I am most interested if my estimates look good and if one would consider this a good property for a first investment.

Thanks!

http://www.zillow.com/homes/for_sale/NJ/pmf,pf_pt/...