All Forum Posts by: Jamie Lee

Originally posted by @Austen Mueller:

Sorry I forgot the utilities. Looks like you set aside $300. Is that monthly? You will be paying for electric, water, heating fuel, sewer, trash given you are renting rooms of a SFH.

Yes it is a SFH and I set aside $300 for utilities and $200 for reserves

Originally posted by @Austen Mueller:

Im trying to run the numbers based off of what you gave. Don't forget to account for insurance, real estate taxes, vacancy, and property management if you decide you want to go that route. I would be happy to run the numbers for you if you give me those numbers. As for the rents I don't know what market your in. I suggest reaching out to a knowledgeable agent or property management company that is familiar with investments. Its important to be confident in your rent number

Insurance $60 monthly/$720 annually
Taxes: $320.83 month /$3849.60 annually 
Mortgage Insurance: 164.09

So, I want to house hack and rent out the rooms. I've been using craiglist and roomies.com. I'd took the average price of a room on both sites to get possible rental numbers. Is there a better way to estimate the possible rent on a room? As for renting out the whole house I believe my mortgage would be $100 above current rental prices for the area. I didn't check for vacancy so, I'll have to get that number. 

Originally posted by @Nicholas L.:

@Jamie Lee I understand you'd make it look like a bedroom, I am asking if, under the laws of wherever you are, it would be a legal bedroom.  This will matter for when you are renting it out after you leave.

 I understand what you're saying now Yes, I'd try to turn it into a legal bedroom not just simply add a window. It is legal where I am but there are specific codes that I'd have to follow to get a garage fully legally converted 

I live in California so 4 bedroom are a bit outside of my price range. So, I'm trying to think of creative ways to do a house hack. So, I've been looking at properties with 3bed 2 bath and a attached garage.

Originally posted by @Nicholas L.:

@Jamie Lee can the garage be a legal BR?

I'd convert the garage to a bedroom before moving out. Adding window etc... 

I've found a house that I'm interested in purchasing. 3 Bed / 2 Bath. I'd live in and convert the garage to a bed room while renting out the rest of the house. After I move out I'd rent out the garage(bedroom)

Here is how the deal works w/ me living in the property. I'd pay the utilities and reserves(money for repairs) which would be $500. I'm not accounting for appreciation in my calculations. After 1 year I'd have built $7529.8 in equity and I'd be able to save half of my monthly income from my job.

(I believe I can get the property $10,000 cheaper but I'm using my max budget to analyze)

Price: $350,000

DP: $10,500

Loan: $339,500

Income: $2050

2 Rooms( $650 + $650) : $1300

Master bathroom $750

Expenses:

PITI: $1,999.25

Reserver: $200

Utilities $300

Does this look like a good deal? Any times on figuring out how much to charge for a room? All feedback and advice is appreciated.