Hello everyone, I am looking to get my first rental property that I will be living in.
The property in question is a 3 unit that is completely redone and very nice. I will not be able to cash flow from two other units but my mortgage payment will be around $400-$500 cheaper than what I am currently paying in rent. Is it safe to calculate that as cash flow?
I just want to take the advice I keep hearing on the podcast that no deal is perfect, but this one just seems like a good place to start for me.
Rental Property Investor · Smyrna, GA · Member since 2018 · 974 posts · 645 votes
5y
Hi @Jose Gallegos, I'd run the numbers on it as if I wasn't living there. If you need to move or buy a new property after a year of living there, then you want to make sure the investment still makes sense. If you plan to live there a long time and you are satisfied with any appreciation gains (speculative), and want to view the decrease in rent payments as cash flow, then it is hard to argue with that when coupled with the tax benefits.
@Joseph Firmin The property cash flows about $500 and is around 32% ROI if I were to rent all three units out according to my calculations! Thanks for reassuring me Joe, I was hesitant on the deal but feel more comfortable now. Just have to do my due diligence now. Best,