[Calc Review] My First Deal (Im House Hacking)

[Shivam Patel]

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[Shivam Patel]

This is my very first deal! I am house hacking! 1 room rented for 850, the other for 950. Utilities I cover. I put 40k down, 315k purchase price, 2.235% interest fixed FHA. NJ is super expensive and I know this may not have been the best deal? Especially since taxes here are extremely expensive. However, in COVID season, every deal pops up and its gone the very next day. I've been looking in this area for 4 months straight and thats what I've seen. I know its -650 cashflow but doesnt account for me living free. Also I am in a masters program at Montclair State university for software engineering so I figured, instead of paying someone else rent, the faster I get a property, the faster I wont be paying high rents near montclair. This is the mentality I was thinking when I bought this. I am currently in the process of setting up escrow accounts for the security deposits for my tenants. Learning a lot of new things I didn't know before. Apparently Chase bank makes you bring a signed lease + their w9 to open an escrow account for security deposit. This doesnt make any sense because I want to collect security deposit before signing the lease haha. Anyway I found that TD does it without signed lease if anyone was curious. I also found that one of my tenants, parents is from another state while he continues education at Montclair. Best way to prevent his dad from getting charged through wiring from different banks is using Zelle. The 4 biggest banks use it. Its instant rent payment and no fees attached. I havent used it yet, but from what I've inquired from different banks, that seems to be the best thing to use. Let me know if you guys have any tips, or any ideas of what I should do next. I'm still new, and love criticism as long as I'm learning from it!! Thanks!