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Updated about 5 years ago,

User Stats

6
Posts
2
Votes
Lance Polvado
Pro Member
  • Investor
  • Denver, CO
2
Votes |
6
Posts

[Calc Review] Help me analyze this deal

Lance Polvado
Pro Member
  • Investor
  • Denver, CO
Posted

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?

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

  • Lance Polvado
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