Cashflow formula for an owner occupied duplex?

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I’m just starting out in the real estate world. Looking to buy my first property which will be an owner occupied duplex in the state of Wisconsin. What’s the formula for cashflow? Every property I look at I’m losing a good $2,000-$3,000 a year by living in one of the units. Which is still really cheap living and I can’t go wrong with paying $200/m for housing. However, I’d like to think I could make $50-$100/m profit somehow. Just want to be in the green. Is this possible? Or do I need more than my 1 unit to start making profit? I’m only 21 so I don’t have $500,000 to spend to make profit right away in my first year guaranteed. Any feedback would be highly appreciated!

Hey @Jordan Lynam ,

In an Absent Owner situation, most investors aim to collect $1,000 of rents per $100,000 of property they buy.

Since you are wanting to cashflow while living in one unit, you have to raise your rent requirements to roughly $2,000/month per unit per $100,000

Those kinds of rents are incredibly difficult to find, in a neighborhood that you want to live in. Typically, the better the Rent/price ratio, the tougher the neighborhood.

When I bought my first owner-occupied duplex, we went for a great neighborhood and the other tenant paid roughly 60% PITI. We were ok not cash flowing because we knew we were in an A class neighborhood and the profits would come from appreciation. 2.5 years after the acquisition, we sold the building and realized a 22% appreciation (definitely atypical results)

In my opinion, if you're going to reside in the building, buy a 2-4plex in a neighborhood where you want to live and the appreciation will come.