Just closed on first deal ! Am I beating myself too hard on numbers

[Elton John]

Side by Side Duplex Purchase Price $365K

B+ area

Negotiated roof to be replaced and property needs about $10k in cosmetic work.

Income potential $3.6 - 3.7k

PITI - $2.6K

Rent Vacancies - $185 (5%)

Repair & Capex - $460 (12.5%)

Trash, Sewer, Cold water -$100

NOI - $300 monthly or $3.6K annually for CoC of 6% if both sides rented.

I plan to live on one side, eliminate the rent I was paying of $1,600 and rent the other unit for $1800

The deal does not look bad even though margins are tight, but I'm just beating myself a bit as this was an off market deal through cold calling a motivated seller and I could have potentially lowered the price to $350k with some better negotiation. Right now I have a 6% loan, but if I can refinance that to 4.5-5%, then there will be another $250 in cashflow, bringing CoC return to 9-10%

[George Red]

Full disclosure I have never house hacked (I wish I was educated on the concept when younger) but being as you were previously paying $1,600 rent your PITI is just 1k higher and you getting the advantages of property appreciation, rent appreciation, built equity and tax write offs... sounds like better than renting. Congrats on landing the unit off market. Singles are valuable in the baseball game... sounds like you just started the game with a solid single, that may turn into a double/triple over time. It's a positive step so I see no reason to beat yourself up at all.

- Congrats