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Updated over 4 years ago on . Most recent reply

User Stats

8
Posts
3
Votes
Hugo Flores
  • Brownsville, TX
3
Votes |
8
Posts

First Duplex Advice!

Hugo Flores
  • Brownsville, TX
Posted

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!

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