502 N Arthur St, South Bend, IN 46617
Project Overview
This scenario evaluates an owner-occupied triplex near the Notre Dame rental corridor using a house-hack strategy. While the property does not support a traditional investor DSCR structure, the in-place rental income offsets most monthly housing costs, creating a strong owner-occupant opportunity with long-term equity potential.
Property Snapshot
Total Size
List Price
Year Built
Address
Unit Mix
Property Type
Key Assumptions
The following assumptions reflect the base underwriting scenario and highlight the key variables that could materially improve or weaken the investment outcome.
Income Assumptions
Two occupied units currently generate approximately $2,335/month in combined rent.
Expense Assumptions
Owner-paid utilities, maintenance, and operating costs materially impact the outcome.
Financing Assumptions
Structure assumes 5% down conventional owner-occupied financing.
Key Investment Metrics
Gross Scheduled Rent
DSCR
DSCR
Cap Rate
Cash-on-Cash Return (Yr 1)
Risks & Open Questions
Several risks were identified during underwriting.
Financing Eligibility
Confirm 5% down conventional financing eligibility for a 3-unit owner-occupied property.
Utility Cost Exposure
Owner-paid utilities may materially affect monthly costs.
Lease Verification
Existing leases and rent ledgers must be validated.
Decision Framework
Aligns with a house-hack strategy focused on reducing housing cost while building equity.
Works under an owner-occupied structure but not as a traditional DSCR investment.
Depends on confirming financing eligibility and operating assumptions.
Decision Outcome
Pull the Trigger
The property supports a compelling house-hack structure where in-place rental income offsets approximately 86.7% of total monthly PITI + MI. While it does not work as a traditional investor DSCR deal, it performs well as an owner-occupied strategy with strong long-term equity potential.
