House Hack Deal Analysis (with numbers)

[Benjamin Sulka]

Hey BP,

I shared this on the deal analysis forum and got no responses so trying my luck here. Trying to consider the long term wealth benefits of owning real estate and not just the numbers themselves. My goal is to pay less than I would renting and get my feet wet with REI and landlording without bleeding too much every month. Please scrutinize the crap out of my numbers! 

I'm going to paste a photo of my analysis so I don't have to type everything out but wanted to call out a few things:

-This is a duplex house hack where my fiance and I would be taking over one of the units.

-Taking 10% reserve for vacancy, PM, and Capex

-5% for repairs

-All other numbers are standard values based on my area. Need to do some more digging into utilities though.

-Current market rent is $1,250 per unit

Here is what numbers look like when I live there:

We currently pay $1,450/month in rent right now so that's something to consider. We'd be paying less than we would renting after taking conservative reserves.

Here is what numbers look like when I move out:

Negative cash flow but

1. Rate is 7%

2. Only put 5% down

3. Cash on Cash return is 52.7% (obviously we will put more cash into things throughout the year which will make the COCR lower.

Would love to hear people's thoughts! Thanks for your time :)

-Ben, aspiring multifamily house hacker