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!

[Jin Lee]

Quote from @Christina Carroll:

@Jin Lee congrats! What town/area are you in?

Thanks for the feedback, I am definitely doing most of the work myself but haven't considered BRRR or other loan/grant options. For the grants/loans, have you gotten one? What was that experience?

I'm currently in Southside, not a wealthy area by any means, but the people have been very friendly so far. 
I got a $4,000 grant on a house that fell through a week before closing a few years ago so I never actually used the money, but this time around I'm applying for a $9,000 grant to replace windows and doors on the property. It is a first come first serve kind of deal, but the programs refill with funds periodically so its good to keep in contact with Home Headquarters to see what is available in your area. Feel free to reach out directly if you ever want to chat RE. Down the road when my rehab is completed I'd like to start up a Bigger Pockets Real Estate Meetup in Syracuse. Seems like there haven't been any for a while.