Triplex House Hack In Florida

[Alex Costas]

Hi all, new member here looking for second and third opinions.

I am looking at a property in the St. Petersburg area, hoping to live inexpensively.

Stats are:

Purchase Price: $150k (pre-appraisal, haggled down from $160k)

Cash to close: $13k (including $3800 first year hazard insurance premium, which seems quite high)

Monthly Payment: $730 P&I + $320 Hazard + $230 Property Tax + $100 Mortgage Insurance = $1,370 total.

Rents: 3 x $675 = $2025. Potentially 3 x $750-$800 with installation of laundry facilities in each unit.

Using the 50% and 2% rules I should only pay ~$101k for the place, and the cash flow after maintenance is added will be $2025 / 2 - $730 = $283/mo.

Considering that I would be house hacking it would reduce my cash flow to -$392.5/mo.

This seems like an acceptable 'rent' considering I will also be having my mortgage paid for me. Could it be that I am underestimating the maintenance costs with the 50% rule considering that the insurances and taxes are so high?

What do you all think of the deal?

P.S. In moving to this new location, my current residence will be free and rented out for ~$800-$1000 per month. This is independent of where I move though, so I have omitted it from my calculation.