What kind of analysis do you do for a househack?

[Kyle Curtin]

Hi everyone,

     I have read "The Househacking Strategy" by Craig Curelop (absolutely phenomenal book!) and found a ton of very valuable information from this book. I am aware that when analysing a househack, that obviously the possible cashflow calculations should be one of the very important things to check out when looking at a potential property. I will probably be interested in that forumla, as well as the area (school district ratings,crime,ect.) and condition of the property, but is there anything else to be aware of when analyzing a househack?

Thank you,

Kyle

[John Warren]

@Kyle Curtin the main thing I focus on with new clients is how the mechanicals are set up in the building as this impacts your profit margins. For instance, here in the Forest Park and Berwyn neighborhoods where I do a lot of work, there is often only one boiler that heats the whole building. This is a very inefficient and unpredictable way to do business for the land lord. Some buildings have separate heat sources, which is much better! I also check to see if tenants pay for their own hot water or if there is a central hot water heater that is paid for by the land lord. Some newer properties will be separately metered for water, while most properties in my area are not (water paid for by land lord). 

All of these utilities add up to be a fairly major expenses when I underwrite properties with clients. The best properties tend to be the ones that are separately metered as much as possible. When you are looking at deals in your area, really hone in on these small, but crucial items.