Is this a good deal? (BP report provided)

[Tyler Jordison]

Hi All, 

I like the numbers I am getting on this particular property, but I am a little concerned with the P&I being so high, as well as that giving me only a .91% income-expense ratio. Should I be worried about this deal? 

https://www.biggerpockets.com/calculators/shared/191621/5edd674e-b996-4bb8-ba06-cbcb63fcf915

Financing is 3.5% down FHA, 30-year.

Thanks everyone! 

[Andrew Kerr]

@Tyler Jordison - You would be getting a 16% CoC return, that's pretty decent. For some folks that is really good, for others that is too low. Depending on how old the property is, and the condition, the capex and maintenance could be too low at 5%. You also don't have management included. Even if I self manage, I like to budget for management because at some point I might turn it over.

But from a house hack standpoint, the oversimplified math is, the $1,000 rent from the one side will cover your mortgage. That would generally save a lot of folks money per month in their personal budget. This makes it super attractive. 

How much are you paying for rent right now, of if you live with family, how much would you have to pay? As an example, would rent cost you $600? So you would be saving $600 - taxes and insurance of $300. That makes your budget free up $300 to save towards investing?

Then if you add a roommate to your side, you could really juice your budget.