Hey guys, thanks in advance for any advice. I'm looking to house hack my first multifam property as a buy&hold in the Milton/Pensacola, FL area. First post so apologies for missing info and/or formatting.
Purchase Price - 250k, 0% down. Assuming full asking price for conservative numbers.
2 Story building with 5 units total, build in 1930.
Units are all currently occupied and rent as follows:
A - 725/mo
B - 775/mo
C - 725/mo
D - 685/mo
E - 600/mo(Unit I would look to occupy)
Monthly Expenses
P&I - 1350/mo
Utilities - 900/mo
Taxes - 140/mo
Insurance - 200/mo
Property Management - 350/mo
Based on these numbers, I'd essentially be living in Unit E for $30/mo however I plan on managing the property on my own for at least the first year which would result in 320/mo towards an expense account. While occupying Unit E, I'd do some minor cosmetic stuff to get the unit into the same condition as A/B/C.
My plan is to tackle repairs, upgrades, etc as they come with the funds in the expense account. Using the 50% rule for expenses, I'm seeing it'd bring ~400/month in cashflow once I rent out Unit E. Income-Expense Ratio I'm coming up with is 1.37%.
Anything I'm missing? Does this look like a good first investment? I ballparked the Insurance amount, listing agent stated 2k/annually but I wanted to leave more of a cushion.
