[Calc Review] Help me analyze this deal

[Geoffrey Tanudjaja]

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*This link comes directly from our calculators, based on information input by the member who posted.

Hi Biggerpockets community!

My name is Geoffrey and I am excited to start my real estate journey! I am currently looking for a duplex to do house hacking.

I found this house that interests me.

Feature of this house:

- Finished basement (1 bedroom and private bathroom)

- 1st Level (2 bedroom and 1 bathroom)

- 2nd Level (2 bedrooms and 1 bathroom, there is a potential to convert the living room into a 3rd bedroom)

My assumption:

- I did not include the potential rental for the basement room which I will explain below.

- I assume tenants will pay for utilities, so I in my monthly expenses, I only include $120 for insurance and $200+ for taxes.

The reason why I did not include the basement room into my calculation is because I am not sure how to rent this out. Based on the layout of the house, I might be able to turn this house into a triplex (where the basement room can be its own studio). They have cabinets down there and space that I might be able to turn into a kitchen down the road. However, this house only has 1 common room for laundry. My second option is to rent the lower unit as 3 bedrooms and 2 baths and 2 bedrooms and 1 bath for the upper unit with common laundry space for both. (I assume $850/month for each unit, total $1700 in rent per month)

The upper unit requires some TLC (either refinish the wood floor or just put a new laminated wood on top). Assuming that I am only renewing the floor, I put $5k as my budget (including labors and materials). Currently, the central room can potentially be converted into a room (it has closet inside there, the room only needs a door). However, if I do this, the upper unit will have limited space for the dining room (right in front of the range and fridge).

I have attached as many pictures as I could, so that it will help all of you to visualize what is the house look like.

What do you guys think about the analysis? Maybe I am too lenient on certain things? Or maybe the way I look at this house is completely wrong? I would love to hear any opinions from the community!

Thank you for all of your help and time beforehand!

[Geoffrey Tanudjaja]

@Robert Leonard

Thank you very much for your input! In your opinion, what is the good range for CoCROI?