Updated over 4 years ago on .
Rental #1 - A house hack
What's going on BP friends.
Bought this house back in 2019 but posting it here now as my first deal as I just recently converted it to a full time rental.
House hacked a single family home in Philly for $250K, went 3% down and had 2 tenants in there with me each paying 550 / month.
Starting figures:
Annual rents: $13,200
Annual operating expenses: $7,000
Annual interest + principal: $14,000
Aware that this was not going to cash flow til I moved out of it. I converted the basement to a room and moved out and have since refinanced to get 1.7% off my rate. Now:
Annual Rents: $20,400
Annual Operating Expenses: $7,000
Annual Interest + Principal: $11,952
Looking at a cap rate of 5.3% and cash on cash of about 7.3%. Not what I aspire to hit but looking forward to doing some deals where I can add value thru rehabs / raising rents!