First post on BP! Recent college grad looking to house-hack.

[Tristian Cavalli]

Hey guys this is my first post on BP. I have been listening to BP for over a year now and have read multiple BP books. It would be greatly appreciated if I could get some advice on this particular property!

I just graduated college and I have been looking to house-hack a duplex here in Tulsa, OK for about 4-5 months to no avail. I am looking to either live extremely cheap ($75 or less/month) or for free (pocketing a bit of cash every month). I came across a deal on Zillow that does not come on the market until July 12th. I ran the numbers using the BP rental calculator. I would love some advice on the numbers. Thank you!

Here is some background info on the property: 

It is in a great area with lots of nice restaurants, coffee shops, hospitals, and right across the street from a QuikTrip. It is an older couple looking to sell the duplex. They bought it for $107,000 in 1991 and have owned it ever since. In the description on Zillow, it says that they wish to stay as tenants and will sign a 3yr lease at $1,200/mo. 

I know this is a going to be a highly sought after duplex so I was wondering if you guys thought it would be a good idea if I tried to get into contact with the owners before it comes on the market (July 12th). If so, how should I go about that? Could I just knock on their door?

It was built in 1975.

3bed / 2bath / 2car garage each side

3,448 sq/ft

I will show the numbers with me getting 2 roommates to live with me 

and

I will show the numbers with just myself living in one side and doing some Airbnb (what I prefer)

With roommates:

$245k purchase price

$10k repair budget

$2,000/mo gross rent

Monthly Income: $2,000

Monthly Expenses: $1,807.15

Monthly Cash Flow: $192.85

Cash on Cash Return: 11.66%

With no roommates:

$245k purchase price

$10k repair budget

$1,200/mo gross rent

Monthly Income: $1,200

Monthly Expenses: $1,679.15

Monthly Cash Flow: -$479.15

Cash on Cash Return: -28.97%

My question is, do you guys think I could Airbnb my side of the duplex to make up the other $479/month?

and

Do you think it is a good idea to get in contact with the owners before it comes on the market? If so, then how should I go about that?

I know that is a lot of information, but I would really love some help if you guys have the time! Thank you!

[Tristian Cavalli]

@Brian Graham thanks for your response! Sounds good thank you so much!