All Forum Posts by: Alexander Gee

Great thoughts from both of you guys, thanks for the input! I think thats where I struggle, based on everything I hear and read I feel like I need to be strict on the reserves. I also don't have much capital right now so I'd really want to focus on building that up. I feel like I would be more apt to move on it at a higher price if the situation were to make my cost of living a lot cheaper right now but that would not be the case given the piti/utility situation. I really appreciate the comments from everyone!!

@Amanda G. That’s about right, I knew the margins were pretty thin and I i was trying to weigh that fact with the benefits I’ll get from hacking. It seems like most investors would probably buy with the same criteria as any other investment irrespective of the benefit from hacking.

Hey all!

I'm looking for some opinions regarding buying a duplex to househack. I have a property thats on mls I made in mind. I want to purchase with a FHA loan so I will have PMI. With this property the owner pays all utilities besides electric. I'm trying to base my offer on the numbers after I am no longer living there as I plan to for a year or so and then try to househack something else. The numbers:

Asking $129900

Will rent for $1700 (whole building after I move out)

Taxes/insurance are $375/month

Utilities are around $250/month

I'll set aside $340/month for reserves

I offered $109000 so that I would be financing around $105000 and that would give me a PITI of around $1025 (including PMI), and because its very close to 80% of ARV allowing me to potentially refi out of the FHA and free up that PMI money. I'm looking for feedback on the line of thinking here. I know there are things I can do to alleviate the burden of the utilities or get more rent (I.e. raising rents, coin laundry, charging for storage/garage) but I don't want to count on them when determining an offer.

Thanks in advance!