Provo Utah Mother-in-Law Rental Deal Analysis

[Bryce Young]

Hi guys. I'm following Brandon's advice to analyze 3 deals a day. I've been looking for a property to "house-hack" in Utah County. I found a property that meets my criteria. I ran the numbers and would love some feedback on things that I am overlooking or mistakes that I made in my calculations.

Here is the property listing: http://www.zillow.com/homes/for_sale/Provo-UT/1190...

I did these numbers as if I was not living in the property, hence the two rents.

2841 W 1680 N

$184,000

$6440 down (FHA loan)

$177,560 mortgage with 3.8% interest

Expenses

Mortgage: $827

Taxes: $70

Insurance: $50

Vacancy: $75

Repairs: $150 (old house)

Total Utilities: $150

Property Management: $150 (eventually)

Capital Exp: $150 (old house)

Total: $1662

Income

Rent (upper level): $750

Rent (bottom level): $750

Total: $1500

Cash flow: -$162

It looks like I would have a negative cash flow so this isn't a deal.

Although it might not be a deal, how are my calculations? This is in Provo, Utah. I got the taxes from the county records and searched google for an average insurance rate.

Thanks in advance!