First Deal as a House Hack numbers

[Paul Bommarito]

Hi BP Family! My wife and I just went under contract on a 4 unit property in a nearby suburb of Chicago and plan to house hack (First Property!!!). I was hoping I could get a second set of eyes on the numbers and see if other people think it makes sense. Details below:

Purchase price: $435k (inspection Monday, hope to knock a little off)

Financing: FHA or Home Possible with 3.5-5% down, rate around 4.75%

Unit 1: 3bd 2ba - currently owner's unit, but plan to rent out around $1500/mo conservatively

Unit 2: 2bd 1ba - Current lease at $1075/mo

Unit 3: 2bd 1 ba - Current rent at $950 (plan to live in this one and update)

Unit 4: 1bd 1ba - Current rent at $800

Taxes: $7100 estimate

2 Parking spaces likely additional $100 a month total

Storage in basement, plan to build 4 lockers at $25 a month each

Doesn't quite hit the 1% rule at the current rents and price we are under contract at, but hoping to increase rents and update 2 of the units to add equity.

Would love any and all thoughts, feedback, things we should do, etc...!

Appreciate everything in advance!