1st Time House Hack

[Zack Klesch]

Hello BiggerPockets, 

I've been following the site and reading posts for some time but I figured it was finally try to post something and get some feedback from the good folks on this website. My girlfriend and I are trying analyze a house hack in NE Minneapolis. We've searched around quite a bit but a lot of the good deals go fast and and we are experiencing some analysis paralysis. However, we think we've found a decent deal in a up-down 2 bed 1 bath duplex with the following criteria: 

Purchase Price: $355K (increased price to cover closing costs so those are not factored) 

Loan: Conventional at 5% down and 3% interest

Estimated Income: 3K / month (about average for area but could possibly get more) 

Mortgage: 1421.86 / month

Taxes and Insurance: 300 + 449 = $ 749 / month 

Repairs and Maintenance: 5% @ 150  / month

Vacancy: 5% @ 150 / month

Cap Ex: 6% @ 180 / month (new roof and poured foundation, only concern is furnace and boilers) 

Management Fees: None 

Utilities: 145 / month (tenants pay gas and electric) 

Extra Variables: Lower unit has a room that could easily be turned into an additional bedroom and there is a attached office to the detached garage that has heating and AC hooked up to it but not water lines (possible Airbnb).

Cash Flow: $204 / month 

Coc ROI: 12.93% 

We did not include management fees as we intend to handle this ourselves and placed the cap ex at a lower rate due to recent renovations. Personally I am a bit nervous in having done this in my analysis, as I like to be a bit more conservative in my approach with these things, but agents found through BP tell me this is a pretty safe bet. Any feedback you could provide would be greatly appreciated. Thanks!