REAL House Hacking Numbers

[Anthony Swain]

Hey everyone,

I wanted to share numbers from my wife and I's 1st house hack. I know a-lot of people talk about house hacking, but not always about the numbers. My goal for this post was to give some transparency for anyone that is considering this approach. 

Full Brick Detached Duplex in Optimist Park (4 Bd/2 Ba) 1610 sq feet

PP: $565k                                                                                            

DP: $28k                                                                                              

Closing Costs: $0 ($15k seller credits)                                            

*Used to cover CC & Buy Down Rate

Renovations & Furnishings (MTR/STR): $47k

Cash Invested: $75k

ARV: $675k-$700k



Just a quick aside, I think right now is a great time for an investor, because there are a lot more people on the "side line". I'm willing to bet if rates went down significantly than getting this property under contract would have had even more competition. With rates higher, the seller was more inclined to take less than listing price and was willing to provide additional seller credits. 

Rent                $2,600/month as MTR                           

Vac (5%)         -$130                                                                                                  

Main. (5%)     -$130                                                                                        Insurance  $97

Cap Ex (10%) -$260                                                                                                Taxes $240

Utilities           -$175                                

NOI $1,905

PITI+PMI= $3,846

Net Income as HH (aka our cost per month)= 

$1,905 - $3,846 = -$1,941      

My wife and I essentially split $1,941/month to live in our duplex in one of our favorite neighborhoods.

So you may ask, "What about your ROI?!"

Well, here is where things get better! IMO every house hacker should include all of these numbers into their overall decision/calculations. 

Cost Per Year to Live: -$23,292

             Amortization: +5,648.46    (aka loan paydown)    

    Appreciation (4%): +$27,200    

                         ROI= $9,556/$75k= ( 12.7%)

ROI is pretty good by itself, but you can add in one more figure. Your housing expense savings.

Our prior rent was $2,300 for a so-so furnished unit in Charlotte.

Plus, we paid $1,000 per month to maintain our tax home as travel nurses.

Total we paid $3,330 per month as our housing expense.                                                                     

Our housing expense saved is $1,359 or $16,308 per year

This makes our Total Net-worth ROI (NROI) much higher.

NROI= ($9,556+$16,308)

                   $75k

NROI= ~34.4%

These numbers will only get better if/when we are able to refinance to a lower rate and more principle pay down.

Any other successful house hackers out there? How are things going for you?