All Forum Posts by: Johnny Manziel

I'm not paying $190/month lol. Granted ill have more responsibility with maintenance but that is living pretty cheap. Like i said before my big thing is the cash flow when i move out given the amount of debt and headache ill have to manage. I want it to cash flow so bad so i can use that money for my next endeavor. 

Yeah I will be there at least 1 year. I dont plan to stay longer than 2-3 because I plan on buying another multi to house hack or buy a single for a nice residence. I agree on the 3.5% down I'm getting in for cheaper than most people and I get to keep more cash in my hand for the next investment!

Utah is flooding bigger pockets - I like the energy levels! 

I think its hard to get this duplex to cash flow heavy. I don't think I can charge $1100/month for a 2BR/ 1.5BA. 1,120sq ft....Any other ideas or comments?

@John Leavelle 

@Sam Newell

Thanks for your responses

John,

A yearly cost on all of that is like $400 for my situation. Tenants pay their own utilities and trash. I wouldn't let anyone manage this one but me :) I'm too excited to let anyone else do it lol. You are right though it doesn't have a huge cash flow once rented out. I'm hoping to go a couple of years with no big expenses since its built in 2012. My biggest fear is doing all of this work and not make any profit to put towards another rental. When I could be buying something else that makes more money.

Sam,

Keep in mind this isn't a booming place like Utah. I know our markets aren't very similar. This is a very expensive duplex in my market from historical data on MLS...Awesome job on your house hacking! I think we have the same mindset there.

What do you think?

Any feedback or concerns are welcomed. I'm on here all the time reading and I finally get to post something meaningful!

First real deal and its a Duplex 2BR/1.5BA each with 2,240 sq ft total

I can probably buy for around $155K-$160K

This is in a B+ area with great neighbors/quite town.

This is a newer duplex (2012), which is basically impossible to find in my area and never on MLS. Its very nice inside and outside. This probably the nicest duplex I've ran across in my market mainly because its newer, has nice upgrades, great floor plan, well built, and its in a great town. (most multis on the market aren't in desirable locations)

I plan on living on one side and renting out the other. 

Tenet pays $875/month and is inline with the market based on quality/location. 

FHA 3.5% down payment

Mortgage, Insurance, Taxes, PMI = about $1065/month

$1065-$875=$190 month I have to pay not counting any maintenance or CAPEX savings.

This would be my second rental property. I really want to house hack and I don't want to live in a $40K duplex or triplex in the hood. I think this property will be an easy sell down the road and will still be in great shape compared to others on the market. (my market lacks duplexes on MLS bad!) I don't really think the house will appreciate much because my entire state will forever be in an economic turmoil. The appreciate factor is more possible with this one than most since its well built. Just my stance.

My expenses would be very minimal since its newer. I know i need to factor in 5% for vacancy and maybe 10% for maintenance. I would do a majority of the work myself so I don't really care. 

When I do rent it out both units the cash flow isn't very high that is a concern.

$875 x 2 = $1750/month - 10% maintenance -5% vacancy - 5% CAPEX - $1065 payment -Higher taxes since it won't be owner occupied - $100 = $235/month cash flow roughly.

Do these numbers sound right given this is newer/great location? I don't see this going unrented for longer than 2 weeks. 

All Feedback Welcomed!

The flooding was so devastating. Most of the homes were completely submerged in water. Do you own a disaster relief company or mold remediation company? What services are you capable of offering to someone whose house has 3 ft of mud inside? Or that their house is split in two pieces? If you can do any of that then I can see where this can be a win-win situation with profits. A majority have flood insurance or will be getting FEMA assistance and will want to stay in their homes. If you have watched the news at all everyone says how they just want to clean their home up and stay.

 No problem Steve. I was actually slaving away at the 8-5. Glad we all can agree on something ;)

 :)