All Forum Posts by: Corey Stevens

@JD Martin when you put it like that, it sounds pretty good. One thing I forgot to account for in my original post was property taxes. Those come out to about $375 a month on that triplex. The numbers really don’t look good after that is taken into account. Or am I looking at it the wrong way??

Thanks for the reply!  In regards to your question about spending to rent somewhere else - my wife and I rent a 2 bedroom apartment for $680 in a nice area.

Once I account for vacancy and maintenance (call it $300 per month) on the triplex it still doesn't look super attractive.  I just feel defeated as I hoped house hacking was going to a bigger game changer for us

Alright ladies and gents, I'm looking for some help! Total newbie alert!

I can't seem to make any house hack make sense!

Example 1:
Triplex (3 bedroom unit, 2 bedroom unit, and a 1 bedroom unit)
Purchase price = $240,000
Loan Amount = $228,000
Rent the 3 bedroom for $800, rent the 2 bedroom for $700 = $1500 in rent
Monthly Payment = $1463
Less than $100 cash flow so far and that's not including vacancy, repairs, etc! Then deduct 10% ($150) for vacancy, and 10% ($150) for maintenance and I'm in the hole.



Example 2:
Duplex (2 bed, 2 bath each unit)
Purchase price = $200,000
Loan Amount = $180,000
Rent = $800
Monthly Payment = $1200
This would mean I still have 400 out of pocket expenses. And that's not including vacancy, repairs, etc.
Once I moved out, I would receive $1600 in rent so I'm cash flow positive.  Then deduct 10% ($160) for vacancy, and 10% ($160) for maintenance and I'm basically breaking even.

Are my calculations just totally off?  Is my area a terrible place to house hack in? I see these great stories of people basically living for free and can't figure out what the heck the deal is with what I've found.

Any insight greatly appreciated for this rookie investor!!

@Trent Stone thanks for the reply! It’s tough figuring out the numbers because I have no idea what building one would cost. 

Has anyone built a duplex in Ohio or Indiana before? 

Would doing a house hack where only 2/3 of the monthly mortgage payment is covered be worth it? Mortgage payment being $1500 and it rents for $1000.

I always hear of people getting their mortgage fully covered and living for free, but is it still worth it to still pay $500/month out of pocket to still get the appreciation, equity, tax benefits, and possibility to use it as a long term 2 unit rental?

Just want to make sure I’m not missing something! Thinking of doing new construction of a duplex in a nice area versus a house hack in a more “sketchy” area to say the least. I understand cash flow can be higher rehabbing an existing place. The problem I’m running into is duplexes for sale in my town are in worse locations. Unfortunately, those look like my only 2 options at this point.

 Thanks for the reply and the tip to look into modular homes. 

Anybody have any idea the cost to prep land? I see on google and bigger pockets threads that the average price to build a modular duplex is about $85/sf. Is that just for the house or is that a true turn key price?

I know I should talk to a modular home manufacturer, but this Coronavirus really throws a wrench in things as far as setting up meetings. 

Has anyone built a duplex/triplex for a house hack? I live in a pretty rural town in Ohio so my options for purchasing a duplex is pretty slim. And of the ones that are for sale, it’s rare to find one that doesn’t need major repair/is a total dump. 

Lots around here go for about $50,000 for 1/2 acre. Rents for a 2 bed 1 bath are around 700-800.