Duplex House Hack Advice

[Carter Henderson]

You probably can’t even call this project a house hack but looking for advice anyways.

I have found duplexes in nice areas of the city, #2 school district, that have nice modern updates and nice big backyards. One is going in the low $400k range and the other for $445k. Between my wife and I, we bring in a little under $100k/yr (should be over $100k in 2020), we have $25k-$30k for a down payment and don’t spend very much. We are currently renting in the city for around $1.5k/month.

The duplex going for low $400k has a current tenant paying $1.6k/month and the $445k duplex has a tenant paying $1.7k.

I do not care to make money initially off buying the duplex and okay paying anything under $1.5k for all in monthly expenses for this place. I think building the equity would suffice for now and then moving out to rent the other half in a couple years.

Does anyone have advise for this deal? Do the numbers not make sense? Is it stretching too far? I would appreciate any information!

[Jaysen Medhurst]

The numbers are tight, @Carter Henderson. These might be okay house hacks, though. With 10% down (which is more than you have) the other unit's rent would almost cover your mortgage. Even with taxes, insurance, maintenance, water/sewer, you should be paying less than you are now. Just don't expect this to be a good investment property once you move out. The numbers just won't work.

How about a 3 or 4-unit? Are there any local programs to help with down payments? You don't want to use all of your savings. FHA is an option, but the PMI on those mortgages is permanent.