First house hack!! But is it worth it? Help!

[Daniel Porter]

Hey BP fam!!

Got a counter offer on a property today and it would be my first deal. Here’s the details.

$120k

$24k down

$5k~ closing costs.

I can rent out the other 4 rooms for about $350-$400 each. So about $1400 in income.

In a C+ neighborhood.

The problem is, i can only qualify for a non-qualified mortgage. So my interest rate on a 30y fixed will be 7.8%, and my monthly PITI will be around $950. $200/mo will be going to taxes (Dallas area).

So as you can see, that only leaves about $400 for CapEx, OpEx and Vacancies.

Right now my rent is about $520/mo with utilities. So my monthly cashflow will still be changing pretty drastically even if I am paying $100-$200 out of pocket per month.

Other things:

I’ll probably put any extra cashflow per month towards the principal, since I can still live off my earnings.

I’ll be refinancing as soon as I can, probably within 24mo, or however long it takes to show border income on your tax return.

Okay, so any thoughts? I’m definitely panicking a bit as I’m about to jump into my first deal head first, but am I missing anything major? Any neighborhood things I should be analyzing? Anything else?

Thanks in advance!! Excited to get this one in the bag!!!

-dan