The E&J Portfolio
Strong

test 2

66 Safford Street

This looks like a strong decision at your assumptions. Owning would cost no more per month than renting a comparable home.

Monthly cost

$3,429

All-in, including reserves

Cash needed

$110,000

To close and move in

10-year net worth impact

$282.88K

Buying vs investing the same cash

Break-even year

Year 4

When buying pulls ahead

After rental income, living here would cost about $1,179 per month — roughly $1,121 less than renting.

What's working

  • Owning would cost no more per month than renting a comparable home.
  • Rental income covers more than half of the total monthly cost.
  • Buying projects roughly $283k more net worth than investing the same cash over 10 years.
  • Buying pulls ahead of investing by year 4.

Conditions for success

  • House-hack math depends on the rented unit(s) staying occupied at market rent.

This one became part of our portfolio. 🎉

View Full Math
Monthly cost breakdown
Principal & interest
$2,054.22
Property taxes
$500.00
Insurance
$200.00
Maintenance reserve
$325.00
Utilities
$300.00
Other recurring costs
$50.00
Total per month
$3,429.22
Amortization schedule & extra payments

Paid on top of the required payment

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

Monthly payment

$2,054.22

Total interest

$414,520

Paid off in

30 years

YearPrincipalInterestExtraBalance
1$311.79$1,742.43—$321,367.42
2$332.67$1,721.55—$317,491.54
3$354.95$1,699.27—$313,356.09
4$378.72$1,675.50—$308,943.68
5$404.09$1,650.13—$304,235.75
6$431.15$1,623.07—$299,212.53
7$460.02$1,594.20—$293,852.91
8$490.83$1,563.39—$288,134.35
9$523.71$1,530.51—$282,032.79
10$558.78$1,495.44—$275,522.61
11$596.20$1,458.02—$268,576.42
12$636.13$1,418.09—$261,165.06
13$678.73$1,375.49—$253,257.31
14$724.19$1,330.03—$244,819.96
15$772.69$1,281.53—$235,817.54
16$824.44$1,229.78—$226,212.25
17$879.65$1,174.57—$215,963.66
18$938.56$1,115.66—$205,028.69
19$1,001.42$1,052.80—$193,361.40
20$1,068.49$985.73—$180,912.72
21$1,140.05$914.17—$167,630.30
22$1,216.40$837.82—$153,458.38
23$1,297.86$756.36—$138,337.32
24$1,384.78$669.44—$122,203.59
25$1,477.52$576.70—$104,989.35
26$1,576.48$477.74—$86,622.23
27$1,682.06$372.16—$67,025.04
28$1,794.71$259.51—$46,115.37
29$1,914.90$139.32—$23,805.36
30$2,044.35$11.07—$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$77.47K$139.50K$146.41K-$6.91K
5$114.42K$234.32K$177.16K$57.17K
10$221.71K$568.19K$285.31K$282.88K
30$989.39K$5.55M$1.92M$3.63M

Break-even: buying pulls ahead in year 4.

Rental scenario detail
Gross monthly income
$2,500.00
After vacancy
$2,375.00
Vacancy allowance
$125.00
Property management
$0.00
Repairs reserve
$125.00
Turnover reserve
$0.00
Net operating income
$2,250.00
Monthly cash flow
-$1,179.22
All assumptions
Strategy
A home with rental income
Holding period
20 years
Purchase price
$375,000
Down payment
$50,000
Interest rate
6.50%
Loan term
30 years
Closing costs
$10,000
Immediate repairs
$50,000
Property tax / month
$500.00
Insurance / month
$200.00
PMI / month
$0.00
HOA / month
$0.00
Maintenance reserve / month
$325.00
Utilities / month
$300.00
Other costs / month
$50.00
Expected market return
10.0%
Expected home appreciation
3.5%
Rent inflation
3.0%
Comparable monthly rent
$2,600
Selling costs
6.0%
Rented portion rent
$2,500
Vacancy
5.0%
Repairs reserve
5.0%