Owner Occupied - How should I calculate expenses?

[Arthur Banks]

Sorry I can't delete duplicate post.

I'm purchasing a 2 unit that I will owner occupy (OO) for the first year. Expected rent $2300 fully rented.

Question is, should I budget as though it will be fully rented or the actual rent for that year? For example: vacancy $230/mo (10% of $2300 fully rented) or $115/mo (10% of $1150 actual rent). When I calculated my numbers before purchase I was looking at about $500-$600 cash flow fully rented (self managed). The rent for one unit would just about cover the mortgage save for about $100. (P.S. I'm not asking about the vacancy rate for my market).

Thanks in advance.

[Aaron Montague]

@Arthur Banks

I would look at an OO property the same way I look at an investment one. The way the money moves changes, but the numbers really don't. Not pay X dollars in rent is the equivalent of making X dollars in new rental income.

Assume you'll move out of the place in the near future. I'd calculate everything like you weren't the person living there. So when you move on to your next investment, you'll have a good idea how much you will be making.