House Hack Duplex deal in Norfolk, VA

[Brian Joseph OConnor]

MLS #10543365 Norfolk, VA

Side by side duplex 4/1.5 (1,000sqft), and 1/1 (650sqft).  Asking Price $315,000.  Built 1917, full reno 2022.  Planning to rent the 4/1.5 side by the room and house hack by living in 1 of the 4 bedrooms then planning to also rent the larger 1/1 side.

Planning 5% down as owner occupied financing.  I calculated rent estimates using both BP rental tool and Rentometer.com so the larger side will rent for average $550/month per room.  The larger 1/1 will rent for average $1,145/month.  Once I move out the entire property will generate $3570/month in rents.  I did my analysis as if I was not house hacking one of the rooms or as if I was counting myself as a paying tenant. 

My PITI + PMI is $2,369/month if I get 30yr fixed at 7% with 5% down.

I'm budgeting 5% capex/ 5% repairs / 8% vacancy and I will self manage.  All utilities will be billed to the tenants.

Using the BP calculator to underwrite this deal I'm showing NOI $32,274, Monthly cash flow $698/month, and CoC ROI 30.99%

file:///C:/Users/Provider%20QCK%20Richmon/Downloads/9284%20Peachtree%20St%20(1).pdf

Please pick this analysis apart and tell me what I'm not thinking about .........