Does this deal make sense? Househack

[Derek Brickley]

Hi all, 

For the past few months, I have been looking for a house hack with a multi unit property. Already preapproved and working with an agent. One lead just popped into my radar, but I’m not sure if it makes sense. As a house hack, it makes perfect sense, and will save me money month to month over renting. My concern is that when I run the numbers given I’d move out and rent the other unit, the numbers don’t pencil out at all. 

In the house hack scenario, I would be living for about $750 per month, which is significantly less than market. When I move out and take into consideration repairs, capital expenditures, vacancy, and possible management fees. The numbers come in at -$500 per month for a cash on cash of like -40%. Of course I would be using a low money down strategy, but I don’t know if this one makes sense to go through with given the long term play.  There is not significant appreciation potential in the sub market where it is located.

Any thoughts are appreciated, thanks!