Would you do this "HouseHack" deal in Orange County, California??

[Daniel F. Harb]

Hello BP Members! Question: I am looking to HouseHack in OC, California, and here are the stats: Purchase price of $250K(ish), FHA with 3.5 down (@$8,750.00 Cash to close.), @$1,850.00 Mo Pmt. Incl. $250.00 HOA. I would rent the 2nd room for around $700.00(?) and my portion of my mortgage would be around $1,150.00. I don't mind my portion of the mortgage, my thoughts are when I move out and this will be a 100% rental, I don't imagine I would get more than $1,300.00~$$1,400.00 total rent. I would be at a negative $440.00 monthly.

I don't think just to get my "Househack" it would be worth it, right?  I would really appreciate all thoughts on this potential property.

Thank you very much in advance .

Cheers!  $$$ 

[Bill Larsen]

Hey Daniel!

Well my first thought is... there's a 2 bed condo in OC that rents for under $1,400?? Seems low. Anyways. If you like the location and the condo and want to live in it then i say buy it.  Eventually you could refi out of the MI.

Another option would be to find a 500k-600k SFR with 3 beds. You could rent out two of them @ $700/each and have no HOA. Your down payment would be more but I would think more of your monthly expenses would be less