Does this house hack make sense?

[Shlomi Mor]

Hi there . 

I want to do a house hack but can’t figure out if this deal make sense on a house hack. 

What I would like to know to all of you house hackers what’s your goal with the house hack? 

1live for free? Meaning all mortgage taxes and expenses is paid by renters? Or just some of it?

2. After one year of living there and renting the unit you left are you expecting cash flow if so how much based on the deal I present below? 

House price 800,000$ With FHA loan 3.5% down 28,000$ plus closing costs 10000$ approx

Two family home 3 bd 1 bath on top can be rented between 3000-3500$ 

2bd on first floor which we gonna live after one year can be rented at 2500-2750$ 

Basement which I would like to make another unit (illegal) one bd can be rented for 1500$ 

taxes 1473$ a month 

Insurance 630$ because FHA loan water about 80-100 a month

Grass landscape 80$ a month 

Repairs 250$ month 

Cap ex 5% 

Vacancy 5% 

does it make sense to buy this house for house hack 1 year and then get out rent the other unit and cash flow about 1000$ a month? Or is that not a good return? 

Repeat the process again a year later?

Or keep renting and just do ours on Multifamily for investment outside New York with more reasonable numbers and better cash flow ? 

[Logan McKay Zylstra]

My goal is to try to live for almost free in my house hacks and then be able to cash flow once I move out. In some markets, you can cash flow, but I don't think that is the norm. I didn't check your math, but $1,000 a month in cash flow for only 40k invested isn't a bad return at all.

I personally would recommend investing in the market where you live to start.

Side note: Conventional loans start at 5%. If you have the capital, I would definitely put down the 5% to avoid the FHA insurance.