Duplex House Hack In Orono, MN (West Suburbs of Twin Cities)

[Bryant Amundson]

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!

[Jay Dewberry]

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.