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Updated over 6 years ago on . Most recent reply

Duplex House Hack In Orono, MN (West Suburbs of Twin Cities)
Here we go:
I am analyzing a Duplex in Orono, MN. 55331.
It is a side by side 3 bed 2 bath (2732 total sq ft) with a 2 door garage, on a street with a neighborhood "private" beach at the end. (so it is very close to the water)
My plan is to live in it with my wife for 1-2 years.
I don't know what it is currently renting for, but the market is at about $1800 for a 3/2.
So yes we would house hack.
Income: $1800 coming in for rental income.
Expenses:
P&I $1632
Property Taxes $275.83
Insurance $100
PMI $100
CapX $108
PM $108
Maint $108
Vac $108
Water $50
Electric $50
Total $2,639.83
Also, water is probably not sub metered. But electric might be. Will find out soon.
Asking Price is $360,000
Going to owner occupy, 5% down
So, my wife and I will be paying about $800ish dollars per month while living there. Then when we move out, we should be able to cashflow $1,000+ per month!
Sounds pretty sweet right. I likely will be pulling the trigger unless something comes up in inspection.
Am I missing anything? Or are there other things to consider?
IF you were me, would you pull the trigger?
Thanks!
Most Popular Reply

Hi Bryant. Make sure to run these numbers in the BP Calculator. From my initial look, this does seem as though it would be a cash-flowing property once its fully rented. However, I'm seeing more of a $450ish/mo in cashflow(unless you don't have to pay for tenants electricity). Your PM seems low. Most PM's would charge around 10% of the rents plus a one month for signing a tenant. Is there any rehab work needed? This would need to factored in as well. Otherwise, it seems solid as a positive cash-flowing property once its fully rented. Either way, good luck on the purchase. If you do decide to purchase, I would be looking to have this fully rented on day 366 of living there.