Property in the City of Rochester, NY

[Bruce McKenty]

Take 2:

Hey Guys!

I have been looking for my first house with an end goal to house hack (because of the lower down-payment) and have positive projected cash flow. I am going to see this property tomorrow:

https://www.zillow.com/homedetails/39-41-Congress-Ave-Rochester-NY-14611/30895304_zpid/

From what I understand, it will probably sell for about 135K. If I got it for that, PITI should run ~$1200. From conversations as well as looking at the current listings for rentals in the area, it seems that you can get just shy of $500 per room (when renting to students) so the total would be ~$2400 per month if all 5 bedrooms were rented (given that I take one of the bedrooms). In which case, it should positively cash flow.

So what does everyone think? Are my numbers realistic?

Thanks very much in advance for your help! I really appreciate it!

[Sara Abernethy]

This is great! I started the same way. Bought a house in Philly and rented the other rooms out. Fast forward 12 years and I still have the place...haven’t lived there in 10 years. My only watch out is to look at what it would rent for as a whole house as well. While it was great renting the rooms out individually, I got significantly less when I rented out the whole place. I didn’t realize that and lost money for a few years (I’m back to positive cash flow now).  Do also consider that when you’re renting the rooms, you might be including some utilities and when you’re not living there anymore, you’ll probably have them take care of most utilities (you have to see what is common in your area).  

Another thing to just be aware of is that in a student area, you’ll have to turn it over every year, maybe every two years if you’re lucky. As opposed to my other rentals with families and retirees that have had tenants in them for years. Just make sure that’s in your numbers. Over time you’ll get good at getting the tenants in back to back but make sure there’s time for turnover built into your leases. 

Good luck!  I’m super excited for you!