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Updated over 4 years ago,
First Duplex Advice!
Greetings,
I have my eyes on a duplex that is brand new going for 190,000. I am thinking of house hacking and renting out the other side. However, I need a second opinion or multiple!
Here are the numbers:
Price: $190,000
Loan/Rate: FHA Loan/3.25%
Rental: $1600-1800/ month. ($800-$900/unit)
Expenses: $1515/month
$1350 mortgage/pmi + house fees
$65 - Vacancy
$100 - Repairs (First year warranty full covered by seller).
Cash Flow: $100/mo
Annual Cash Flow: $1200
Invest+Closing: $11,250
COC Return: 10%
What do you all think?
I am doing the numbers with the lowest rent income for the worst case scenario.The rent could be higher also it is a very nice looking inside out home for a family. Also, since its just being built there is not set Taxes or insurance, so I went a bit over to make the worst case scenario... I do not count on value appreciating... I know the first year I wont see any expenses going to repairs since its covered by warranty from the seller.
Please advice! I would like to start my real estate portfolio!