Crazy cashflow on my recent purchase

[Connor Mullen]

I bought my second duplex in October 2020. It is financed as an investment property, but after I closed, I decided to house hack. Here are some details before I jump into talking about it.

Purchase: $100,000

Loan: 25% down, conventional

Repairs: ~$15,000

Mortgage: $335/month

I found this duplex on the MLS and wasn't too sure about it for about 2 weeks. I talked to my new realtor, and he sent me the property, along with a handful of others as good potential deals. I looked into this duplex again, ran the numbers again. One side was rent for $600 (market rent is $750), other side was vacant, and had been vacant for 5 years...

Long story short, I bought it, did all the work myself (along with some help from my parents, my girlfriend, and my sister). We did flooring, painted throughout, painted kitchen cabinets, minor remodel of the bathroom, bought a baller fridge, and built a 6' wood fence around the backyard.

I've lived here since middle of December. However, the crime is pretty bad, my security camera caught my neighbor shooting his gun off his front porch a couple nights ago, just because (at least he wasn't shooting at anything particular I guess) :0.

We aren't comfortable living here anymore, so now I'm purchasing a tri-level SFH in a great neighborhood. The bottom level has a family room, bedroom with an attached bathroom and a laundry room. Needless to say, this is a great setup for an Airbnb I believe. Now, I am sad about moving out of my house hack. I'm not too sad seeing my cashflow on this duplex.

Right now, my PITI is $584/month. My rent on my tenant side is $750, so I'm living for free.

With moving into my SFH in about a month, my current tenant wanted to move to my side (it's much nicer) and agreed to pay $800/month, I will find a new tenant in the other side for $750/month.

After repairs, capex, and vacancy are set aside (I will manage myself for now). My cashflow is $636/month... INSANE.

After seeing this, I still can't believe that this house had sat on the market for about two weeks, I think because the other tenant was living here and the other side had been trashed from previous squatters.

RECAP:

All in with downpayment, closing costs, and repairs about $42,000.

Rents will be $1550/month. Cashflow $636. ROI 18%.

I couldn't be more happy, now too bad my first duplex wasn't this good, LOL.

Thanks for coming to my TedTalk.