House hack in the saint Louis area

[Jabu Reamey]

Just bought my first house, multi family on the south side of saint Louis. 

4 family, 1br 1bath units. Each rents for 400-450 depending on updates has a full basement and 3 car garage which I plan on using for myself seeing as it's in slight disrepair.

I will be living in one with a friend so she will be paying $200.

The monthly payment on the house is $780 

My plan was to take the $720 positive cash flow and put an additional $450 per month for my rent into a savings until I reach $5000 for a safety net then put the extra $1,170 towards the mortgage until it's paid off.  

And find a second 4 family hopefully before the end of the year for a similar strategy

[John Van Uytven]

Seems like you have a good idea and a good strategy.

Once you save to $5,000, instead of paying off your complete mortgage with the $1170 why not split that in half?

Send $585 towards the first mortgage, and send the other $585 into savings. When you go to your next project the banks wants to see reserves for down payments and emergencies. 

Keep up the good work.