Bungalow Duplex for House Hack

[Peter Williams]

Okay, first timer here!

Just put an offer down on a duplex in my area. Listed at 1.2M, I offered 1.025M

Duplex is 2x 2bed 1bath, plus a detached garage that I'll convert to a 1bed ADU. Property has a pool.

Would need to do the FHA loan at 3.5% down. payment would be $7500/mo. I'd pull a personal loan for the ADU build, would be $500/mo. Total loans $8k/mo

If my best buddy and I live in the duplex with our wives, and rent the ADU on Airbnb, we feel like we could clear enough monthly income that we could atleast eat into our obligations to the loans by half or maybe a bit more.

Curious what y’all think, anyone done anything similar? 

Thanks so much,

Pete