Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Updated almost 8 years ago, 01/01/2017
Thoughts on First Property
Hey BP,
I'm currently renting and looking to buy/house-hack my first property. This particular house has a garage apartment, so the plan is to move into the garage apt and rent out the house. I can also Airbnb the apt on the weekends and crash at a friend's place.
Purchase Price: $260K
Downpayment: 3.5% via FHA loan = $9,100
Closing Costs: $7,800 (Asking seller to pay)
Rehab: $0 (House is in excellent condition, with limited/no rehab/upgrade potential)
Total Cash out of pocket: $9,100
Annual Rents: $36,000 (2,200/mo from house [utilities included], 800/mo [8 nights/mo] from Airbnb = 3K/mo)
PITI: $19,417 (30 year fixed @ 5% - estimate, need to find a lender)
HOA: $2,328 (includes cable)
Utilities: $5,160 (Electric, Gas, Water, Trash, etc)
Other: $6,120 (6% Repairs, 6% CapEx, 5% Vacancy Rate)
Cash flow: $4,775 ($398/mo)
Cashflow Margin: 13.3%
2% rule: 1.15%
50% rule: 41.8%
Cash-on-Cash: 52.5%
Cap Rate: 8.1%
Gross Rent Multiplier: 7.22
Debt Coverage Ratio: 1.3
Thoughts? The model varies a lot based on how much I can rent out the garage apt (breakeven at ~4 nights/mo)