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Updated almost 5 years ago,
Can I calculate what I "would" receive for rent while hs hacking?
I'm currently living in one of the 4 units of my multi family property and I'm trying to calculate the ROI. I'm only paying $200/mo after I collect my rents. I could rent out the unit for $2400/mo if I moved out. Can I use the market rent for this unit to calculate my ROI or do I have to use what I'm only collecting from the other 3 units? Also, I financed the repairs into the loan. Do I calculate the repairs as part of my initial investment? I financed the property with 100% financing. The only "cash" I used was $5000 for an EMD and $1650 for taxes and insurance (I was able to use the rent deposits toward costs plus my loan company paid closing costs for the seller and for me!) Sorry if I worded this wrong. It sounded so much better in my head!
Nicole Candelario
DRE# 01984085