What are your thoughts on this house hack/future rental?

[Devan Sprayberry]

So I would love some input. Please and thank you.

I live in Woodstock, Georgia.

There’s a five bed three bath single-family house that can be converted into an up down duplex. In addition there is a large two car garage. The sq feet is from 2500-3000 based on tax records and different listings.

The upstairs has three beds two baths with a lot of space and has a washer/dryer and all of the appliances. It is selling for 325,000.

The downstairs is an Inlaw suite that has two bedrooms and a really nice rock tiled bathroom. It has a kitchen that’s already set up, a living room, and has access to the outside. All the rooms have windows. It is connected to the garage as well.

We are looking at a conventional loan, 5% down, and a 2.625% rate. There would be about $100 in PMI extra a month unless I went with navy federal since they match %'s but I hate just getting a rate from someone just to use them. The taxes are $2500 a year and the insurance to cover the house would be around $2000.

Checking out the rental prices from Zillow, rent-o-meter, and other sites it says that the max price would be $2200 to rent out the entire house as a whole. I could probably rent out the downstairs for 1000-1200 and the upstairs from 1200-1600 if I rented them out separately. There is enough driveway space to give everyone their own parking space.

The catch is if my fiancé and I get the house we have to live in a beautiful place and pay 300-500 to cover the mortgage until we can move out and rent the upstairs. We can afford it ourselves but I want to turn it into a rental in the future and a house hack for now.

What are your thoughts?

[Bradley Sriro]

@Devan Sprayberry don't forget to account for utilities... since the units won't be individually metered for electric, water, etc. you will likely have to include the utilities as part of the rent price.