Deal Analysis - 4 Bed 2.5 Bath; House Hack/BRRRR (near ATL, GA)

[Sean Chua]

I'm analyzing a deal to house hack and rent by the room. There's an extra office space that I can convert into a bedroom for myself, along with 4 other ones upstairs that I'm thinking of renting out for $800 each (1 bed 1 bath in the area is around $1300 according to rentometer). After the 6 months of seasoning, I'm hoping to refinance and get back some of my capital. What do you guys think?

Purchase: $405k

Personal contributions: 12k (closing costs) + 15k (repairs) + 20k (5% down payment for conventional loan) = $47k

Pure Cashflow: $500/month

Cash on Cash ROI: 13.33%

ARV: $475k? I found another house with similar bed, bath, square footage sold recently at this price. Would this be accurate? The Zestimate was over 510k for that house, but not sure how accurate that is.

[Sam Collins]

@Sean Chua

Do not go off Zillow’s estimate. Usually way off. You need to consider a few things. Main thing for me would be the 50% rule. 50% of the income will go towards maintenance, cap x, vacancy, and taxes.