First time real estate investor in Windsor

[Sat Palshetkar]

Hey,

I'm a first time investor in real estate and my wife and I are planning to invest (with house hacking) in Windsor, Ontario, Canada. Our agent is very helpful and found us a great deal (duplex). I wanted to share the numbers and want to make sense if it's a good deal for us according to what we are looking for.

Price: $450k (agent said that we can get it down to $420k)
2 Units (1 bedroom in each unit)
Mortgage with 3 year fixed comes up to around $2.3k
Insurance and tax is roughly $400
Rent per unit is $1.4k so if we move out then total rent comes up to $2.8k
There's a detached ADU (garage) that can give us another $100-$150 if we rent it for storage and there's a scope of converting it into another unit later on.

So currently rough calculation says that it can cashflow up to $300 per month. But my question is that if we consider other operating costs like maintenance, capital expenditure, vacancy, etc then this property won't cash flow, so is this a good deal? Am I stretching this too much by adding these operating costs?

[Stevo Sun]

Quote from @Sat Palshetkar:

Hey,

I'm a first time investor in real estate and my wife and I are planning to invest (with house hacking) in Windsor, Ontario, Canada. Our agent is very helpful and found us a great deal (duplex). I wanted to share the numbers and want to make sense if it's a good deal for us according to what we are looking for.

Price: $450k (agent said that we can get it down to $420k)
2 Units (1 bedroom in each unit)
Mortgage with 3 year fixed comes up to around $2.3k
Insurance and tax is roughly $400
Rent per unit is $1.4k so if we move out then total rent comes up to $2.8k
There's a detached ADU (garage) that can give us another $100-$150 if we rent it for storage and there's a scope of converting it into another unit later on.

So currently rough calculation says that it can cashflow up to $300 per month. But my question is that if we consider other operating costs like maintenance, capital expenditure, vacancy, etc then this property won't cash flow, so is this a good deal? Am I stretching this too much by adding these operating costs?

The numbers are tough and it's hard to account for all unforseen expenses. There's no risk free investment in real estate. So it's really what you are comfortable with and what your investment thesis is.