Class C bought in 2023 on the East Side of Indy has not been great, repair calls 9 times out 12 months.

Discussing options with my wife, we are looking to take ownership of the house, make some much-needed repairs, and getting it rented out.

Do you offer 80% LTV on the full appraised value or is it limited to purchase price + repairs completed? 

For residential multifamily properties (1 - 4 units), can you use a home warranty to take care of the repair costs associated with rentals?

If we rent the unit at $1,425, I have an estimated monthly cashflow of $302 (rent at $1450, cashflow is $325) I DO include vacancy, repairs, and cap exp in my Box2 Expenses.

Don't get me wrong:  cash flow is still an important factor, it keeps the lights on, it pays for repairs and upgrades.

The study could also identify the opportunity to capture additional benefits such as dispositions, and repair and maintenance expenditures.

Take the time to break down what needs to be repaired and what upgrades you will be doing.

However, the biggest con is that you are sacrificing a bit of your privacy by living right by your tenants and it is usually a lot more stressful since everything is your responsibility - managing tenant issues, handyman repairs, taking care of the lawn, etc.I would strongly recommend house hacking especially in the Columbus Ohio market!

With my own portfolio I generally underwrite with 10% for repairs, 10% for cap ex, 5 percent for vacancy.