The E&J Portfolio
Avoid

Test

30A

At these numbers, we would pass on this one. The main thing to watch: investing the same cash projects roughly $526k ahead of buying over 10 years.

Monthly cost

$7,639

All-in, including reserves

Cash needed

$140,000

To close and move in

10-year net worth impact

-$526.39K

Buying vs investing the same cash

Break-even year

Never

When buying pulls ahead

After rental income, living here would cost about $4,759 per month.

Key risks

  • Investing the same cash projects roughly $526k ahead of buying over 10 years.
  • Buying never catches up with investing within the modeled horizon.

Conditions for success

  • House-hack math depends on the rented unit(s) staying occupied at market rent.
View Full Math
Monthly cost breakdown
Principal & interest
$5,688.61
Property taxes
$1,000.00
Maintenance reserve
$850.00
Utilities
$100.00
Total per month
$7,638.61
Amortization schedule & extra payments

Paid on top of the required payment

An annual lump sum, e.g. from a bonus

Monthly payment

$5,688.61

Total interest

$1,147,902

Paid off in

30 years

YearPrincipalInterestExtraBalance
1$863.42$4,825.19—$889,940.50
2$921.25$4,767.36—$879,207.29
3$982.94$4,705.67—$867,755.27
4$1,048.77$4,639.84—$855,536.28
5$1,119.01$4,569.60—$842,498.97
6$1,193.95$4,494.66—$828,588.52
7$1,273.92$4,414.69—$813,746.47
8$1,359.23$4,329.38—$797,910.42
9$1,450.26$4,238.35—$781,013.78
10$1,547.39$4,141.22—$762,985.56
11$1,651.02$4,037.59—$743,749.95
12$1,761.59$3,927.02—$723,226.10
13$1,879.57$3,809.04—$701,327.73
14$2,005.45$3,683.16—$677,962.77
15$2,139.76$3,548.85—$653,033.04
16$2,283.06$3,405.55—$626,433.69
17$2,435.96$3,252.65—$598,052.94
18$2,599.10$3,089.51—$567,771.50
19$2,773.17$2,915.44—$535,462.02
20$2,958.89$2,729.72—$500,988.75
21$3,157.06$2,531.55—$464,206.72
22$3,368.49$2,320.12—$424,961.34
23$3,594.08$2,094.53—$383,087.61
24$3,834.79$1,853.82—$338,409.53
25$4,091.61$1,597.00—$290,739.27
26$4,365.63$1,322.98—$239,876.46
27$4,658.01$1,030.60—$185,607.25
28$4,969.96$718.65—$127,703.55
29$5,302.81$385.80—$65,921.93
30$5,660.63$30.66—$0.00
Buy vs invest projection

Both paths spend the same total cash each month; whoever pays less for housing invests the difference at the market return. Home equity is shown net of selling costs.

YearHome equityBuyer net worthInvestor portfolioDifference
3$174.44K$174.44K$360.91K-$186.47K
5$273.93K$273.93K$535.15K-$261.22K
10$562.98K$562.98K$1.09M-$526.39K
30$2.64M$2.64M$6.63M-$3.99M

Break-even: buying never catches up within the modeled horizon.

Rental scenario detail
Gross monthly income
$3,200.00
After vacancy
$3,040.00
Vacancy allowance
$160.00
Property management
$0.00
Repairs reserve
$160.00
Turnover reserve
$0.00
Net operating income
$2,880.00
Monthly cash flow
-$4,758.61
All assumptions
Strategy
A home with rental income
Holding period
10 years
Purchase price
$1,000,000
Down payment
$100,000
Interest rate
6.50%
Loan term
30 years
Closing costs
$20,000
Immediate repairs
$20,000
Property tax / month
$1,000.00
Insurance / month
$0.00
PMI / month
$0.00
HOA / month
$0.00
Maintenance reserve / month
$850.00
Utilities / month
$100.00
Other costs / month
$0.00
Expected market return
7.0%
Expected home appreciation
3.5%
Rent inflation
3.0%
Comparable monthly rent
$0
Selling costs
6.0%
Rented portion rent
$3,200
Vacancy
5.0%
Repairs reserve
5.0%