I've looked at all houses that match my criteria. No luck

[Jonathan Barreneche]

Hello,

So I am looking for a multifamily home in the Tampa/St. Pete area that is under $220k. I am doing a VA loan, so I have to live in the property. The goal is to house hack the home. My parent will also be living with me as I need to keep care of her, and she has told me that she will cover the rent cost of the unit that we are living in. So I will be able to run numbers with full possible rental income as all units will be producing cash, even the one im living in.

I have looked at all 75 listing in the past month and a half that fit my aforementioned criteria, but there is no luck. I can rarely get a monthly cashflow of $0.00 dollars. The average home has a cashflow of -$150.00 after I run my numbers with the BiggerPockets rental property calculator. I have even ran hypothetical numbers, where I buy the house for dramatically less than asking price. Or even increasing the rent price by a dramatic amount. Still no luck.

These numbers not working are really starting to bring down my morale, and Im just stuck on what to do. I will be forced to move by middle of January, and I want to find a house to own rather than rent from someone. Is it just a bad time to be buying a house? It seems to be a strong seller market in this area.

Is it a sound idea to go rent out a $500 room until houses come down in price? Or do houses follow the same idea of time in the market, beats timing the market.

Open to any and all advice/opinions

[Jonathan Barreneche]

Originally posted by @Richard Sherman:

Got it, so you are accounting for the mortgage balance pay down on your cash flow...I know it isnt technically there ona  cash flow statement but it might help you make the decision (i.e. $300 is going to principle then even if you had to feed it an extra $150 until rents increase, it isnt so bad.)

These are long-term plays..try to find a 4 plex even if you have to bump up your price range, you will get some credit with the loan for the additional rent and it will probably help your cash flow. Make certain VA allows you to have multi unit and shop around, do not assume that VA is your best option, FHA may be better, especially if you are a first time home buyer.

Do this trick with me...in 10 years, what happens to your mortgage on that 4 unit we just bought for you?  Stays the same as it is now right...what do you think rents are in 10 years?   A OK deal now will be an AMAZING deal...just need time for it to happen.  Play the long game, get a deal when you can, but hitting doubles and singles win games, it isn't just homers.

Wanted to give an update, and I guess patience is important! Got a property that's pulling me $615 a month cash-flow ( not including a 10% management expense ) since I will be managing it myself.