[Calc Review] First Try at VA-Loan House Hacking a NC Duplex!

[Paris Capers]

The Links:
VA- Hacking

As Rental

First, thankyou for your time, kind stranger!'

The Deets:

The long term Tenants are paying month-to-month at $750 each in 2b1b units. 1500/mo according to agent. I believe once complete we can live in one and rent the other for at least 800. Potentially up toward 850 by leveraging both the nearby College and Transient Health Care Professional Market.

The big ticket items (Roof, water heater, windows) seem to be new or near new.

The neighborhood is fair and sales/comps tell a very odd story. Two similar properties on the street appear to have sold for approx 930k each. Agent is unsure why and looking into it. Most values of similar homes in the area look to be near 100,000 or less. Most a comp has sold for in last year is for $85,000 on 8/5/19, with the same floor plan. This seems to be in much better shape, but again, its not stellar.

First impression:

By my very less than professional assessment, I believe the house needs light to medium renovation to make it as good as new or better: Paint, updated fixtures, new counters, carpets and lights. Its age, wear and tear and a less than stellar yard/landscaping which are holding it back. Seems like a long distance or uninterested investor owner, maybe.

My Why: My criteria for this deal- are: 1) Generate a cash flow of 300/mo after reno, and 2) Be able to create 20% forced equity in up front of the BRRR. We are already pre-approved for 219k prior to discussing a Rehab loan (TBD). We currently have about 25k in reserves. I estimate the home could yield good rents with some updating, Reno and dedicated landscaping work. Our intent is to occupy while we reno the other side, switch and repeat. After reno, we'd move out, rent both units. Appraise/REFI at the 6-month mark, and hopefully Cash out with north of 150k (via a 70% LTV financier) to repeat the process a little smarter and with some coin to show for it. Boy are my fingers crossed.

My primary issues with these reports are:

-I have the overwhelming feeling that I have all the figures wrong. Though I don't expect it to be perfect, I really don't want my first try to be my last.
-I believe I likely filled the Hacking sheet incorrectly, as there will be no Rental income during reno. Aside from US "paying the rent plus 300", which would account for the monthly mortgage+ expenses. This seemed like the best way to identify that. Open to suggestions there.

-As our first BRRR, I'm unsure how much and how long a the reno could take and cost at all, let alone in the area. I believe I'm overestimating costs, but I'd rather be conservative.

Thanks again for your time, and thanks for reading my wall of text!