All Forum Posts by: Bhautik Bhanani

Thanks @Ben Firstenberg and @Josh Bowser, I got the idea and I do see point of having near exit. Also as I stated above that and as per current house price and as per offer price and mortgage rates, I am getting around $3300 month mortgage payment.

However, after 2-3 years if rates get better and if I refinance then I don't know but hypothetically, if I get interest rate of 5.5 then my monthly mortgage goes down to $2600 around. And as this property I am talking about is 3bed 3bath, I assume as per location I can charge $2500-2600. So if I rent out that time, then either I would be paying $100 or so from pocket or I would even out. Therefore, do you think is this good to have that property as it won't be generating any cash flow for sure for some years until interest rates go down more. 

As I am new to this and this would be my first property and in future rental, I don't know if this numbers good or bad?

Thanks all for responding.

@Ben Firstenberg - scenario I talked about have $2300 as rent where I will be losing $700 is after I move out and convert property to rental fully. As it would be negative cash flow and big one but I assumed if including tax deduction if I am in loss then I may get credit. But I would certainly check with CPA. However thanks for providing idea of keeping separate room share after I move out. I would play with numbers with that approach.

@Josh Bowser - thanks for example. I got an idea with having extra loss credited in regular job income or other way. I will surely check with CPA for this. I have few properties I am looking for having shared or separate bathroom as I assumed that would factor in as well.

Also if would that be great to have house near developing Exit. as stated earlier, it is really close to new Exit. and I got mixed results online for house value near Exit or Freeway. Wanted to know if having new Exit will increate value or affect negatively?

Hi all, I am married and first time home buyer and currently living in Alpharetta, GA. Housing market here is good here as I saw online it says Alpharetta and Milton to have highest median home price in Georgia. I am planning to buy 3 bedroom townhouse and going house hack way to rent out two bedrooms to individuals.

I plan to keep that property as my primary home for 2-3 years and planning to covert to rental property and buy new house after that. Average 3 bedroom rental here is around $2300/month and as I look for current mortgage then it comes around $2000/month plus other expenses like property tax, HOA, insurance, etc. combining to $3000/month.

I am little confused here as I researched that when I file tax for any rental property then I can waive of Mortgage Interest, HOA, Insurance, Property Management fees and few more additional expense to operate that property and if I charge $2300/month and if I don't refinance after 3 years suppose interest rate doesn't change then I would be paying around $700 out-of-pocket to run that property. However if I waive of tax including those expenses then I may come up even. This part I am still confused as I am not sure how that would work out.

If anyone has knowledge to then could you provide info how this may work out? or It won't work out as I am predicting? Also, if there are interest rate change going lower compare to now in next 3 years and if I refinance then how it would affect monthly rent to total expense ratio.

Also, property I am describing about is having new Exit being developed near by. It would be a minute drive to that house to new Exit. Will that affect any property appraisal in future positive or negative way? Also above strategy I am planning to house hack initially and convert to rental will work? or are there negative risk to that?