Is This A Good Investment? #AnalyzeWithMe

[Gabriel Combs]

I am considering buying a 4 bed 2 bath duplex, (2 bed 1 bath per unit) and house hacking. I am planning on getting an easy-reno loan that gives you 15% of after repair value (if anyone knows about this loan and if you can on use part of the 15% and put the rest back into the loan that'd be great to know). Intrest will be at about 5%. Purchase price is at 68,900, but hoping to get it down between 1 and 5 thousand since it's been on the market for about 2 years. (Any advice on negotiating would be great). There is currently 1 tenant in each unit, renting at 650 for 1 unit and 450 for the other. The plan is to remove the tenant from the 450 unit, put about 5-8 thousand into it, live in it for 1-2 years then investing in my next property (Any advice on how to go about that part would be great at well).

So saying I could get the house for 5 less at 63,900, with an after repair estimate of 95,000 (should I estimate this number higher? The zestimate is currently at 114.6k but as you can see the purchase price is currently at only 69,000), bringing my mortgage payments to 5,034 per year.

If I am able to keep the tenant upstairs, I don't plan on getting PM for as long as they are there (while I still lived there).

Also accounting for them to stay I have a 0% vacancy rate for the first year or two while I lived there.

For the one unit my GOI is at 7,800 per year with expenses such as GM at one months rent for the year (650), grounds keeping at 45 per year, property taxes at 2,000 per year, and HOI at 924 per year, bring my grand total for expenses to 3,619 per year. (Excluding utilities which I will split w my roommate).

Bringing my yearly cash flow to negative 853 dollars per year.

Now this is for the first 2 years

But after, I plan on refinancing, (any advice on this again would be great), moving out and renting that unit for 650.

Adding expenses such as 10% for PM, upping the maintenance to 1,100,

Bringing my yearly income to 3,831 per year.

Thoughts? Thanks everyone who took the time to read and respond!