1st Property Looking to House Hack with college students - Need advice.

[Rolando De la Cruz]

Hey Everyone,

I just graduated college with no debt so I want to buy my first property and House Hack with college students, I found a property currently selling for $175,000 dollars, but I think It can be negotiated to a lower purchase price since it is a little outdated and the other houses in that same street have sold for less money, although it is outdated it could be rented for $550 dollars a month + utilities and since it is a 4 bed, 2 baths; renting out the other 3 bedrooms while I live in one of them would help me break even with the house's monthly expenses. Now if I remodel the kitchen, bathrooms, doors, windows and some other stuff I could probably rent it out for $650-$700, increasing my cash flow, specially when I move out. I am not sure what the ARV would be, specially because the other houses in that street currently have a lower value than what this house is listed for. When it comes to the finances I am planning to get a first time home buyer FHA loan with 3.5% down and when adding the closing fees and all the other fees we are looking around $12,000 dollars out of pocket. My question would be is it recommended to remodel some of the house? if so, is it recommend for me to get a different loan that will cover the remodeling or should I pay that out of pocket, or should I seek for a FHA 203(k) loan?

I played baseball at the college I am trying to rent out so I spoke with the coaches and they will recommend players to live at this house. I understand vacancy can increase during June-July so I will budget accordingly to cover those months. I am planning to keep the property long term. If I missed any important details feel free to ask and let me know your opinion.

Thanks for reading this post!