Would YOU consider this a great buy and hold deal????

[Melissa Harris]

I hope that someone can help me :) I am Realtor here in Colorado but I am slowly trying to turn myself into a real estate investor and start "house hacking". I am in a unique situation, as I bought a 2,700 square foot new construction home in 2015 and learning more and more about house hacking this year, I am wanting to buy a "duplex, 3-plex or 4-plex" by next year. But I know that the banks don't like me buying another primary residence and buying "down in square footage" Do you have any strategies on how I can go around this obstacle and still be able to buy the duplex, 3-plex or 4-plex with a FHA loan and live in one of the units? Also, I did buy my home with a FHA loan as well, so I know I will need to refi out of it and get into a conventional loan.

On a side note, I have ran my numbers on my personal home to see if it will be a great rental property for me. Could anyone tell me if this looks like a good rental property for me? I am trying to see if I should keep it as a rental or if I should sell it. Here are the numbers:

Purchase Price: $203,000.00 

Purchase Closing Costs: $1,000.00 

Estimated Repair Costs: $3,000.00 

Total Cost of Project: $207,000.00 

After Repair Value $284,000.00

Property Description Maintenance free home in Greeley. Bright ranch plan. Beautiful kitchen w/island, granite counter, stainless appliance package, island & dining space. Large master suite w/ walk-in closet, 3/4 bath with spacious walk-in shower. Highly energy efficient home. A/C. Tankless H20 heater. Fully landscaped yard maintained by the HOA.

Down Payment: $0.00 

Loan Amount: $203,000.00 

Amortized Over: 30 years Loan 

Interest Rate: 3.625% 

Monthly P&I: $925.78

Monthly Income: $2,200.00

Monthly Expenses: $1,949.20

Monthly Cash Flow: $250.80 

Pro Forma Cap Rate: 4.97%

NOI Total $14,119.00

Cash Needed $4,000 

Cash on Cash ROI 75.24%

Purchase Cap Rate 6.96%