All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Start here
  • Education
    Forums

    Learn from and contribute to 660K+ real estate discussions

    BiggerPockets Podcast

    Listen to weekly interviews with investors & entrepreneurs

    BiggerPockets Blog

    Delve into 8,800+ articles by experienced investors

    Member Blogs

    Read original articles by BiggerPockets members

    Guides

    Master the ins and outs of fundamental real estate topics

    The Money Show

    Listen to weekly interviews that will help get your financial house in order

    Webinars

    Sign up for this week's free webinars hosted by experienced investors or view previously-held webinar recordings in the Archives

    Videos

    Browse our library of real estate related video content

    Free Course

    Experience The Financial Independence Blueprint video series - a free four-part video series

    Topics
    Property Management Property Types Finance Strategy Finding Deals Business Operations
  • Network
    Members

    Search over 1,270,000 members across BiggerPockets

    Companies

    Explore over 31,000 real estate-related companies

    Real Estate Agents

    Find an investor-friendly agent near you

    Hard Money Lenders

    Pinpoint lenders near you with our nationwide database

    Events

    Find upcoming real estate events and meetups near you

    Jobs

    Browse real estate job opportunities in your area

  • Tools

    Calculators

    • Fix and Flip
    • Rental Property
    • BRRRR
    • Rehab Estimator
    • Wholesaling
    • Mortgage Payment
    • 70% Rule
    • Airbnb Calculator

    Services

    Find a Contractor Get a Mortgage Loan Tenant Screening External Link

    Additional Tools

    FilePlace

    Download presentations, spreadsheets, contracts & more

    REI Resources

    Dig into thousands of curated real estate tools & resources

    Calculators
  • Marketplace
    Properties For Sale

    Buy and sell real estate deals or seek out partners, financing, etc.

    Find Foreclosures External Link

    Search this comprehensive database of nationwide foreclosures

    Ads, Jobs, and Other

    Advertise your real estate business, deals, financing & more

  • Bookstore

    Featured Book

    Recession-Proof Real Estate Investing book cover

    Recession-Proof Real Estate Investing

    This easy-to-follow guide will show you how to make money during all of the market’s twists and turns! Accomplished investor J Scott dives into the theory of economic cycles and the real-world strategies for harnessing them to your advantage.

    Get the book now

    Real Estate Books

    • Flipping and Estimating Bundle
    • How to Invest in Real Estate
    • How to Sell Your Home
    • See All Books
    Real Estate Books

    Shop books covering real estate investing and personal finance.

    Lease Agreement Package New

    Don't spend $1,000 on a lawyer!

    Real Estate Forms

    Lease Agreement Package New

    Don't spend $1,000 on a lawyer!

  • Plans
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
ForumsArrowReal Estate Deal Analysis and AdviceArrowDuplex analysis - owner occupied
  • Newest Posts Arrow Down Light
    • Newest Posts
    • Unanswered Discussions
  • Trending Arrow Down Light
    • Top Discussions
    • Trending Discussions
  • Reviews & Feedback Arrow Down Light
    • Local Real Estate Forums

      Real Estate Forums near you

      • Washington Real Estate Q&A Discussion Forum 1.8K Posts 294 Discussions
      • Maryland Real Estate Q&A Discussion Forum 2.6K Posts 389 Discussions
      • Norfolk Real Estate Forum 350 Posts 35 Discussions
      • Norwalk Real Estate Forum 7 Posts -1 Discussions

      View all Local Real Estate forums

    • General Info
      • Real Estate Success Stories 77K Posts 3.7K Discussions
      • New Member Introductions 489K Posts 56K Discussions
      • Real Estate Not-So-Successful Stories 523 Posts 41 Discussions
      • BiggerPockets Summer Reading List 92 Posts 14 Discussions
      • Real Estate Quizzes 696 Posts 21 Discussions
      • BiggerPockets Money Podcast 675 Posts 50 Discussions
      • BiggerPockets Exclusive PRO Area 16K Posts 3.0K Discussions
      • Questions About BiggerPockets and Official Site Announcements 42K Posts 4.1K Discussions
      • FAQ Forum 132 Posts 9 Discussions
      • BiggerPockets Webinar Discussion Forum 459 Posts 15 Discussions
    • General Real Estate
      • Military Investing 5.5K Posts 533 Discussions
      • Renters Discussion 44K Posts 5.1K Discussions
      • Do it Yourself 32K Posts 3.5K Discussions
      • Construction & Remodeling Diaries 6.1K Posts 1.0K Discussions
      • Buying & Selling Real Estate Discussion 424K Posts 58K Discussions
      • Get Foreclosure Help - Stop Foreclosure Forum 6.6K Posts 910 Discussions
      • Home Owner Association (HOA) Issues & Problems Forum 6.2K Posts 911 Discussions
      • Completed Deal Diaries 5.9K Posts 2.0K Discussions
      • Investor Deal Diaries 17K Posts 865 Discussions
    • Reviews & Feedback
      • Real Estate Guru, Book & Course Reviews and Discussions 28K Posts 2.9K Discussions
      • Real Estate Deal Analysis and Advice 131K Posts 19K Discussions
      • Ask About A Real Estate Company 24K Posts 2.7K Discussions
    • Investor Basics
      • Real Estate Investor Marketing Help & Advice 46K Posts 6.5K Discussions
      • General Real Estate Investing 145K Posts 19K Discussions
      • Starting Out 291K Posts 42K Discussions
      • Investor Psychology 21K Posts 1.6K Discussions
    • Landlord & Tenant Forums
      • Landlord Forums & Rental Property Questions 359K Posts 39K Discussions
      • Mobile Homes & Mobile Home Park Investing 19K Posts 2.3K Discussions
    • Foreclosures
      • HUD, VA, and Tax Sales 10K Posts 1.5K Discussions
      • General Foreclosure & Pre-Foreclosure Forums 33K Posts 5.2K Discussions
      • REOs 17K Posts 2.2K Discussions
      • Short Sales Questions 17K Posts 2.1K Discussions
    • Real Estate Strategies
      • Real Estate Development & New Home Construction 19K Posts 2.6K Discussions
      • Short-Term and Vacation Rental Discussion 22K Posts 2.0K Discussions
      • Real Estate Wholesaling Questions & Answers 137K Posts 18K Discussions
      • Innovative Strategies 27K Posts 3.4K Discussions
      • Tax Liens, Notes, Paper, & Cash Flows Discussion 34K Posts 3.9K Discussions
      • Rent to Own a.k.a. Lease Purchase, Lease Options 15K Posts 2.3K Discussions
      • Rehabbing and House Flipping 110K Posts 13K Discussions
      • 1031 Exchanges 8.8K Posts 1.4K Discussions
    • Commercial Real Estate
      • Commercial Real Estate Investing Forum 36K Posts 4.8K Discussions
      • Multi-Family and Apartment Investing Forums 97K Posts 10K Discussions
    • Business Basics
      • Goals, Business Plans & Entities 26K Posts 3.5K Discussions
    • Real Estate Technology and the Internet
      • Real Estate Technology, Social Media & Blogging 16K Posts 2.3K Discussions
    • Loans, Mortgages, Credit Lines
      • Real Estate Crowdfunding Forums 5.6K Posts 384 Discussions
      • Creative Real Estate Financing Forum 51K Posts 7.5K Discussions
      • Private Lending & Conventional Mortgage Advice 105K Posts 14K Discussions
    • Financial, Tax, and Legal
      • Personal Finance Forum 18K Posts 2.0K Discussions
      • Tax, Legal Issues, Contracts, Self-Directed IRA 100K Posts 15K Discussions
      • Property Insurance Questions & Discussions 11K Posts 1.8K Discussions
    • Real Estate Professionals
      • Real Estate Agent Forums 47K Posts 7.1K Discussions
      • Bankers, Lenders, and Mortgage Brokers 12K Posts 1.9K Discussions
      • Contractors 18K Posts 3.7K Discussions
    • Real Estate Marketplace
      • Marketplace 227K Posts 88K Discussions
      • Real Estate Events and Happenings 57K Posts 12K Discussions
    • Off Topic
      • BiggerPockets Real Estate Investing Summit 2.0K Posts 107 Discussions
      • Off-Topic 43K Posts 5.3K Discussions
      • Housing News & Real Estate Market Discussions 15K Posts 1.8K Discussions
Start a Discussion

Duplex analysis - owner occupied

4 Replies

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
  • 1
Karla Evans
  • 4 posts
  • 1 votes

Karla Evans
from New Orleans, Louisiana

posted about 2 years ago

Hi all! Happy Sunday!

I am in the process of analyzing and already visiting multi families with my real estate agent (who happens to be a very good friend I've known for a while) so that I can buy my first property, which I want to house hack. Anyway, I am a little confused on the following:

When analyzing a property using the rental property calculator, I understand if the numbers make or don't make sense when I analyze it as if I was going to rent both sides of it. But when I analyze it as if I was going to rent only one side and living on the other side, well, obviously the numbers don't look as good. So my question is: is it a good deal if I get at least big part of the mortgage and PMI, or hopefully that amount in full (my husband and I are buying it with FHA which we are already approved for) from the rent that the tenant will be paying? Meaning, we will be paying from our pockets the home insurance, all the utilities, saving for cap ex, maintenance, etc and we won't be cash flowing, but at least we will be getting the mortgage and PMI from the tenant (or at least a big chunk of it). Is that a good deal? What should I be looking at when analyzing, numbers wise, an owner occupant multi family in order to make sure I am buying a good deal? Makes sense?

Sorry for the long post. This is our first property and we really want to do it right. Of course a little nervous, but super excited... and trying to learn!

Thank you all! Look forward to hearing your comments, teaching lessons and suggestions!

Karla

Kevin Siedlecki
  • 712 posts
  • 450 votes

Kevin Siedlecki
Investor from Madison, Connecticut

replied about 2 years ago

@Karla Evans - You should analyze it as if you are going to rent both sides out. Hopefully this is going to be a long term investment for you. You are thinking about it the right way - obviously it won't look as good when you take half the rent away, but you are kind of making that money, too, because you're no longer paying rent. 

You also probably will only live there for a few years, but you'll hold it longer. If you hold it for 20, but live in it for 2, then 90% of the life of the investment is with both sides rented out, so you should analyze it with that assumption.

Sam Epstein
  • 16 posts
  • 6 votes

Sam Epstein
from San Antonio, Texas

replied about 2 years ago

I would analyze the deal the same as if you were going to rent out both sides, but figure how much you would have to pay in rent for your side. For example if you will live in a side that is a 2 bed 1 bath and you would have to pay $850 a month in rent to someone else, assume that as your income for your side. Then if the other side is also a 2 bed 1 bath that you rent for $850, your total would be $1700. Then if you do an all bills paid situation you need to account for that, although some duplexes pay their own bills separate. I assume you currently have to pay rent somewhere else or a mortgage, so here you will be your own tenant. The plus side is you know you will pay 12 months out of the year and not cause a huge amount of damage. You also don't have to report your own rent factor as income rob the IRS, but if you rented out you're side and cash flowed you would pay income tax, and still have to pay rent somewhere else that isn't tax deductible. Remember actual tenants might not pay12 months out of the year since you might have vacancy when the year move in/out and also you've could rent to people who lose jobs etc.

Disclaimer: I am not an accountant or lawyer, so none of my comments about tax consequences etc should be taken without consulting a qualified professional!

Karla Evans
  • 4 posts
  • 1 votes

Karla Evans
from New Orleans, Louisiana

replied about 2 years ago

Thank you @Kevin Siedlecki that makes me feel more confident. Yes, it is a long term investment so it totally makes sense what you said. I am trying find a property that represents a good deal, specially because this is my first investment, so will def be analyzing them that way. Thank you again!

Karla Evans
  • 4 posts
  • 1 votes

Karla Evans
from New Orleans, Louisiana

replied about 2 years ago

Thank you @Sam Epstein ! I forgot about the taxes if I have an owner occupied property vs just tenants. I have a CPA and been asking all these questions, so thanks for reminding me of that when analyzing. Definitely will keep analyzing as if I was going to rent both sides... but feels good to think that I will be paying towards my mortgage rather than wasting money in rent! Thanks again! 

  • 1

Top Contributors

Dennis M.
Dennis M.
Erie, pa
9.29
Score
Will Gaston
Will Gaston
Columbia, SC
6.5
Score
Jaysen Medhurst
Jaysen Medhurst
Greenwich, CT
5.7
Score
Adam Scheetz
Adam Scheetz
Staten Island, NY
5.24
Score
Robert Leonard
Robert Leonard
NH
3.85
Score

Trending Discussions

  • YOUR biggest hurdle to buying an APARTMENT COMPLEX in 2019 is...
    93 Replies
  • Rich Dad, Poor Dad--Is it too late?
    42 Replies
  • Turnkey Dad, Penis Dad
    23 Replies
  • Tenant Screening Fees- is $40 per person too much?
    28 Replies
  • STR Automation Resources
    19 Replies
"
Close Thin

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here

Already have an account? Click here to log in

Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • Perks
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • Google+
  • YouTube
  • Instagram
© 2004-2019 BiggerPockets, LLC. All Rights Reserved.