All Forum Posts by: Jeremiah Belocura

I would ask your tenants first to see if they're interested but if not, rent it on fb marketplace. We had a shed that wasnt being used & none of our tenants wanted the extra storage so after a couple days we had over 50 people inquire about renting it.

@Cory Benhardt - how did you handle renting out the shed? Was there a lease involved?

0 Votes

Quote from @Ryan Thomson:

@Jeremiah Belocura House hacking is tough to cashflow in year one (with current house price run-ups and interest rates) for a couple reasons:

1. You are living in one of the rentable units

2. You are only putting 5% down so your loan amount is much larger and therefore your mortgage payment.

I would consider your net worth ROI. What I mean by this is considering how much your down payment returns to your net worth (appreciation, loan paydown, tax benefits, AND rent avoidance). Don't forget to include rent avoidance in your numbers! You have to live somewhere.

You may need to lower your return or cashflow expectations so you can get into a house hack that will allow you to avoid throwing rent money away every month. You know this, but don't forget all the other ways real estate makes you money. Paying down your mortgage and owning an asset that will appreciate over the long term.

Definitely good perspective, thank you @Ryan Thomson. Admittedly, I do have expectations of being able to live for less than what rent would cost, but the BP Calculator has been good insight into the additional expenses beyond the mortgage payment alone.

As for cash flow, that I was taking into account for the future after we move out, which the calculator seems to say it doesn't even after then. But yes, I'll try to remember the rent avoidance and have more realistic expectations!

1 Vote

Philadelphia, Pennsylvania

Quote from @Eric Greenberg:

Just to add, when you move out there may be more expenses that you are not considering such as:

Rental license for each unit [$63/yr],

Lead cert for each unit [Varies depending on #bedrooms in each unit]

Fire alarm monitoring (if needed) [$4-$600/yr]

Fire alarm cert (if needed) [$100-300/yr]

Sprinkler/standpipe cert (if needed)

Refuse Trash Bill [$500/yr] or private trash pickup

Electric bill for shared areas (Assuming everything is separately metered)

Water: Most older rowhomes do not have separate water meters. You can buy inline products to gage the usage but most of us use the number of people in a unit to charge the tenants a fixed cost. But some months you may eat some of the cost. Hopefully your numbers are close enough that you break even.

I definitely didn't take these into account, so thank you @Eric Greenberg! Are these for when I move out, or would I also need to take these into account when we would take possession? The tenants have been long term, so I honestly wouldn't be surprised if the current landlord hasn't kept up with a lot of codes and regulations.

0 Votes

Philadelphia, Pennsylvania

Quote from @Alan Asriants:

Hey Jeremiah, I have a feeling I know what duplex you are talking about lol! I invest in the phila area and would be happy to help you run some numbers on rentals and what I use to buy my properties. If my hunch is correct this is the one on Sumac. A solid renovation can get you closer to $1650/m. I'm not sure if you have accounted for it, but if youre using FHA you have to add in PMI, also homeowners insurance: around $1400/yr.
Reach out to me anytime if you want to run some numbers or just talk RE

You got me, @Alan Asriants--it is that one! Did it pique your interest, as well?

I'd definitely be looking to do cosmetic renovations, which hopefully is all this property needs. Still trying to find out more from the selling agent through my realtor.

I'll factor in the PMI and will hopefully get a better sense of the whole mortgage picture when I hear back from my loan officer, but I'm glad to get a better sense of the annual home insurance, which I had higher per month.

1 Vote

Philadelphia, Pennsylvania

Hi all, first-time [future] house hacker. My wife and I are moving back to Philly and have found a duplex we're interested in, both units being 2 bed/1 bath at roughly 750 SF.

I used the BP Rental Property Calculator, which honestly I'm not sure I'm even using correctly and/or might be over or underestimating various factors.

Does this look like a good deal? Am I understanding correctly that our effective rent would be $1,767?

Even when we move out and rent out the other unit, currently I think this neighborhood would only get $1,400 each, so according to the calculator, it would still be burning cash instead of cash flowing.

Thanks for any help!

2 Votes

Philadelphia, Pennsylvania

All Forum Posts by: Jeremiah Belocura

Jeremiah Belocura has started 1 posts and replied 5 times.

Post: Renting out storage shed in yard

Post: First-time Philly House Hacker

Post: First-time Philly House Hacker

Post: First-time Philly House Hacker

Post: First-time Philly House Hacker