Hacking House My First Property

[Demetrius Pettway]

Hello All,

Recently a seller accepted my offer on a duplex. My goal is to owner occupy one unit while renting the other. There is currently a tenant renting one of the units until April 2023. I currently pay rent of approx.. $670. The monthly mortgage on the property would be $1,415, the tenant pays $800 of that (under market rent in my area) a month. Does it make sense to go through with the offer? I would have to cover $615 in left over mortgage, which is about a $55 savings from what I am currently paying in housing. I wanted to decrease my housing expenses at least 50% or better. Obviously I can raise rent over time, and I know I’ll be in profit once I move out and rent the second unit. I’m just not sure if it makes sense, on paper, seeing how I wouldn’t really see a significant change in my fixed housing costs until moving out, renting the second unit, and possibly raising rents over time. Look forward to the responses. Thank you in advance.