Reviewing Numbers for Current House Hack in Syracuse NY

[Christina Carroll]

Hi all,

Looking for some feedback on our current house-hacking numbers and any recommendations on how to proceed once we move out.

We bought our first property in November 2021 (duplex 1/1 upstairs and 2/1 downstairs, C+ neighborhood). We have an excellent tenant in the 1/1 and opportunity to fix up the 2/1.

$154,000 purchase price, 3.5% down FHA loan @ 2.75%, with high NYS taxes our monthly payment is $1,256. Investing ~$15,000 in fixes this year (bathroom, kitchen, exterior cosmetic and safety improvements). Concerned about roof replacement in 8-10 years and furnace replacement in 3-5.

$725/mo for the 1/1, when we move out I expect $1200/mo for the 2/1. Rent includes water, parking, shared laundry, basement space, garage space, and shared small yard. Tenant is responsible for gas and electric.

Question 1: BP calculator says we'll make $240/mo (8% CoC) when factoring in the potential roof and HVAC replacements and assumed rents. I was hoping for at least 15%. What would you do to in my situation to help hit that number?

Question 2: We'll have $40k by end of this year to invest in another property. Our initial thought is to keep this property, rent it, and purchase another house-hack. Thoughts?

Thank you in advance for any advice!