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Updated about 5 years ago,
[Calc Review] Help me analyze this deal
I'm currently in the process of analyzing a property I've found. A few details about the house:
- Purchase Price: $250K. 20% down.
- 3 Bedroom, 2 Baths, 1727 sf
- Built in 2018
- Needs absolutely no work
- I'm wanting to purchase this as a primary home and convert my current home into a rental. I would house hack and rent out the 2 remaining bedrooms. The plan would be to house hack for 2-3 years and move out into another house hack. I believe I can get $750 all bills paid for each room, or $1500 per month in rent. That would put me paying approx. $400 per month into savings to cover a cushion for PITI, Vacancy, Capex, Repairs, etc.
- After 2-3 years, assuming all else stays the same, I would generate approx. $133 in monthly cash flow on top of PITI, Vacancy, Capex, Repairs, etc.
- Is this a deal you’d go after?
- 20% down would essentially drain all my liquid funds, so I’d also like everyone’s thoughts on other avenues to pay for the down payment? Should I approach a private money lender and do an 80/10/10?
- Any other financing options? Or should I wait until I have more saved?
*This link comes directly from our calculators, based on information input by the member who posted.