House Hack Deal Analysis

[Patrick Dean]

Hi guys. I just finished reading the book on house hacking and would like to get your thoughts on a deal I've come across. I've been pre approved by a lender of up to $300,000 using a 3.5% FHA loan. I would live in the smaller unit of this duplex. It is newly renovated and in a great area. There is hardly any inventory for multi families where I live in louisiana. And 95% that you do find are in horrible areas of town.

Listing Price: $244,000

House type: Duplex

Main House: 3 bed 1 bath

Smaller unit 2 bed 1 bath

Estimated Monthly Payment:$1550-$1650

Rent from main house:$1,200

Obviously this does not break even or cash flow with me living there. But paying $300-$400 to live is very cheap while I can start building a portfolio. And obviously once I move out after a year it will begin to cash flow. I have cash reserves for at least 7 months for this property after the down payment.