House Hacking Single Family Home Help Me Analyze

[April Causapin]

Hello,

Has anyone divided a SFH to create privacy as owner and rent out part of the house?

It's a SFH with 4 bedrooms and 3 baths, I'm planning to section off one area with kitchen and dining and upstairs bathroom and bedroom and leave the 3bedroom and 2 bath for rent. Instead of a family, planning to rent it by room to maximize profit and I can possibly even section off an area and make it a 4 bedroom, 2 bath. My question is, is it okay to add an extra kitchen in the sectioned off area so the SFH will have two kitchens?

Purchase price: $815,000 SFH 4 bed, 3 bath with pool, solar and attached garage

11% down 88k

2% closing costs 16k

Monthly mortgage: $6,012

Plan 

1. 4bed/2bath- Needs kitchen, new room with window and closet- 20k

Rent-

1bed, private bath with utilities: 1400

1bed, shared bath with utilities: 1200 x 3 = 3600

(Current rents in the area range from 900-1500 with utilities)

Total: 5K

2. 1 bed/1bath- my living space

3. Attached garage: convert to 1bed/1 bath: 50-70K.

Possible rent: 1500-1800

Total expenses: 194K

With renters: I may break even along with utilities but no need to pay rent. 

Does this make sense?

Area is between 11 colleges so I'm hoping to rent to college students or young professionals.

Basically trying to create a triplex but with SFH.

Thank you for your feedback.