Ive never house hacked exactly myself but I have created some value added opportunities and make a decent amount of money with the properties I am currently managing.
This property has been on the market for a while here. Im interested.
Its a multi fam w a three bedroom house and a 2 bedroom guesthouse. Also has a 1 car garage (unfinished and in need of attn).
The asking is 299,000 and its been on the market a little while.
According to lending tree the payments are $1749.00/ mo including 7.1% interest, $47 insurance, $83 property taxes, $59,800 down payment and a loan of $239,200.
Rent on a 2 bedroom around town can range from 800 on the low end to 1600 on the high end
Rent on a 3 bedroom can range from 1200-2500 a month.
Conservatively I think we can expect to bring in 2000 a month on the residential rental space. This seems like it would be more than enough for a person to house hack and it doesnt include the possibility of renting out the garage space separately for 400 a month. I currently rent a shipping container out at 300 a month so 400 shouldn't be a stretch of any kind. Gross rent could be around 2400 a month if these conditions can be met. If one were to manage themselves and could perform even basic repairs I think this could be a real gem. Live in the 2 br and rent out the garage and 3 br for a total of 1600/ mo. Move out in four years and collect the entire $2400 minus repairs.
To boot, its on the bus line for our local colleges, 2 blocks from a buss stop, in a class C neighborhood and has a ton of room for sweat equity (landscaping, painting, etc).
Is my idea way off? It doesn't hit the 2% rule or the other rules of thumb but I have found those numbers to be difficult to attain in our local market.
