I'm new to this site and REI in general.
Wondering what you think about this property. It's a two-flat home, in which I'd be living in one of the units.
This would be my first home. I want to finally take the plunge and buy, but would prefer a property that also has a tenant.
BTW, if anyone has tips on how to use this calculator in this situation (partially owner occupied multifamily home ), I'd love to hear them.
Thanks in advance.
*This link comes directly from our calculators, based on information input by the member who posted.
@Svend W. Will the one unit really generate $3300 a month or is that if both units were rented? I also noticed that you have $100 for insurance. That seems like a very small number unless it is already accounted for in your mortgage calculation. The taxes also seem to be low but I am not familiar with the area. If you haven't I would look up the property on your counties property appraisers website. The taxes for the previous year should be posted and part of the public record. If you can afford the mortgage on your own then it is probably a solid investment but only because you don't need the rental income to be able to live there. If you NEED the rental income in order to pay the mortgage then this might not be the one as I think you will get into trouble if you have a vacancy for any extended period of time. If you are desperate to get a tenant because you have to have one then you could end up selecting a tenant that is not high quality and create more issues for yourself.
Thanks very much for the analysis and great suggestions.
I did make a mistake with the combined rental income, which is $2900 rather than $3300. I was trying to incorporate the higher rent that I'm currently paying as renter but which wouldn't be paid if I moved into one of those units into the equation. I wanted to revise the report and update the post but didn't have time.
The taxes are from the MLS listing, but it may be out of date or just wrong. So that's a great idea to check on the county appraiser website.
You're probably right about the insurance being off since this is a relatively expensive area (Evanston, on the north shore of Chicago). I was spit-balling after I wasn't able to get a quote quickly from an insurance company.