$140k Orlando SFH to House Hack

[Jody Hodges]

Hey guys!

This is actually my very first post on the Bigger Pockets site. I started listening to the podcasts a month ago and can't get enough - I am thirsty for knowledge. So, now I have lots of good books to read and am going to educate myself a bit before actually diving into investing. I live in Sumter County, which is an hour from both Orlando and Tampa. I'm pretty familiar with Orlando, so I plan to start my investment path with house hacking there. 

Anyway, while looking around Orlando on Zillow, I found this home. I haven't yet delved into how to analyze deals and such, but I'm eager to know if my initial line of thinking makes sense. So, what do y'all think about this, as a hypothetical? If I lived in the mother-in-law suite and rented out the other two bedrooms in this home, it seems as though that would definitely cover the mortgage, given the decent location, and then after I move out in a year, cash flow could be around or over $1,000. Couldn't I even do a HomeStyle Renovation mortgage and roll the rehab costs into the loan amount if I wanted to fix it up beforehand? 

Orlando seems like such an exciting place to invest. I can't wait to learn more and get started!

[Dylan Shea]

@Jody Hodges, that isn't the best area, as noted above... but not so much because of the crime, although that is an issue, but from a numbers perspective, houses in that area were going for 30-50k just 2 years ago, and now that investors have gotten wise, they are making minimal repairs and reselling for much greater amounts. A good way to tell is to look at the prior sale price and find what it last sold for (Zillow has this info and the County Property Appraiser usually does as well). This one sold for 32.6k (granted this was back in 2014), but that number is definitely the top end for that area. I don't back on appreciation plays, but would never buy where I know there won't be any appreciation, unless that cash flow was just amazing. This would not be the case here.