MFH Househacking Question

[Angel Rosado]

Hey BP family, so I'm planning to a #househack with our initial investment property and planning to use a fha 203k loan in order to buy a fixer upper hoping to add value through renovating.   For those who have experience with househacking, how do you take into account the rent that you are paying? For example, your have a monthly payment (including mortgage taxes and insurance) of 2,100 and can rent out the other apartment for 1,100.  What do you consider the 1,000 that you have to put in? Rent? How do you account for vacancies, repairs, and/or cap ex? Do you take a percentage of the rent on 2100 or 1,100.

[Andrew Auger]

Hi Angel,

I too am attempting to house hack as well. I also take my "owners revenue" into account, I use my current rent payment as a default "rent" for whatever unit I intend to live in. Basically it gives me a better idea how the money will actually flow with me paying myself rent.(yes I know its not really rent and isn't accounted for with the irs ect ect). Its more for me to figure out how in reality it looks in terms of will I be paying more or less than I currently am and how it might look once I move out.

This is the sheet I use to help evaluate properties. I account for Property Management, and then add it back to the bottom line as I plan on managing it myself at the end of the day. Of course there is the BP calculators in the Analyze section for your own reference. 

https://docs.google.com/spreadsheets/d/1OZWj-NXE4F...

Hope this helps!