House hacking breakdown help for Cash Flow?

[Afrothiti Manolis]

Hi, everyone!

I'm new to this and want to learn about the math here to see if either of these have cash flow opportunity. Can someone help me breakdown what they would take into account? I would be getting 3.5% FHA loan and would live in one of the units (the smaller ones.) Wondering if I can move from renting currently at $1,400 a month to buying a 2 flat for house hacking. I get the future appreciation and tax benefits come with owning but wanted to know per month if either of these have potential cashflow? THANK YOU!

1. 6030 N Claremont Ave Chicago, IL 60659
2. 6119 N Wolcott Ave Chicago, IL 60660

[Ioana Coman]

@Afrothiti Manolis

The most important is that your rents cover your mortgage and have a positive cash flow.

FHA 3.5% owner occupied:

6030 N Claremont Ave :

If you pay the asking price of $449,000 and you add the rents listed $1550 +$1285 =2835 ( gross income/month) , taxes $10453/year, maintenance 5% of rent per building/ mo and $1000 approx insurance/year. No vacancy, no property management fee, then your gross operating income is $2835 - $1096 (operating expenses ) =$1739 net operating income - $1898 Loan payment comes to — $159 negative cash flow.

If your rents are different then you might end up even. In this case negotiate the asking price.