How do I figure out how much I need for a househack?

[Brooke B.]

Hello!

My plan is to househack a duplex within an hour from Philadelphia but not actually in Philly. I will live in one half and have 2 tenants in the other half. I think 150-250k is a good range for prices to look for (but please correct me if I'm wrong!).

I am 26 years old and work as a financial analyst making 65k a year and expect to get a raise (will probably change to 70k) within the next year. Unfortunately, my student loans have really depleted my savings. Currently only have 12k in savings...but I do have a credit score of 744. Talked to one lender and they said I will need at least 20k to start shopping properties. I am hoping to obtain down payment assistance since without it, I would basically have no savings...basically, I am just looking for a dollar range I can strive for so I can plan accordingly. Or if someone could provide a calculator/calculation for finding out this number range, I'd appreciate it. Thanks!

[Alex Smith]

You should be able to obtain a 3.5%-5% down on an FHA loan from lenders in the area. In regards to your current monetary situation, I wouldn't necessarily count on the $5k raise (you never know what will happen or will not happen). I would look into what you are spending your money on currently and see what you could cut back on. I would also see if there are any other jobs out there at different companies. I think in general, that is probably the fastest way to gain a pay raise, at the very least, you get experience interviewing and that isn't a bad thing. If moving companies is out of the equation, take a peek into what you are spending your money on each month and what you can cut back on. Retaining the dollars that you have already made is always a good option.

I think Nicholas is right in the above post though, you want to make sure that your buy doesn't completely wipe you because there are always the chances that something will come up or you have a vacancy. 

Best of luck