House Hack in Denver

[J.R. Gutierrez]

I'll preface this by saying this is mostly hypothetical. Unless I found a lender or someone willing to partner with me on this, it's more of a study than anything. So here it is:

I found a listing for a Fourplex in Denver. The property consists of three 1 bedroom/1 bath apartments in a building upfront and a 2 bedroom/1 bath single family home on the back of the property. There is also a 1 car garage in the back. From the photos and a Google Maps search, the property and area seem to be in relatively good shape. The property is listed for $700K. I did a Zillow search to check what similar units rent for in the area and actually found one of the 1bd units listed for $1,200/mo. So 3 x $1,200 = $3,600/mo for the three apartments and an additional $1,500/mo(?) for the house in the back. Plus something for the garage?

Hypothetically: I would live in the less desireable of the units (probably the basement apartment) and rent out the rest, including the garage to whichever unit wanted to rent it.

So here are my questions based on the simple information I gave:

1. Is there value to this property in regards to house hacking?

2. Are my rent figures off or in the ballpark?

3. How much would one expect to spend a month on mortgage, taxes, etc?

I've only been on BiggerPockets for less than two weeks and I'm pretty much new to REI. I've been learning a lot and I think simple exercises like these will help me understanding the business better. I'm sure some of you will point out information I've missed that would affect this as an investment.

Thank you in advance for the help!

[Bill S.]

@J.R. Gutierrez if you are serious, the first thing is to see if you can afford it. Find a mortgage broker and see what you qualify for. If you are serious, make sure they underwrite you (pull credit etc) and consider funds for down payment and reserves. They should be able to get you a specific amount that they will loan you. Make sure if you are house hacking the lender has significant experience in the world as the average mortgage broker for first time home buyers does not.

 After that, you find a buyers' agent that knows house hacking. After that you can shop/hunt for property.

If you are just kicking tires, do a drive by. If it looks interesting, call the listing agent and see if they will show the property to you. If it's occupied they may not show you occupied units unless you are a qualified buyer. Depends on the agent and the property owner.