Numbers on a Multi Family Property

[Jimmy Ready]

Hello all, my question involves the number on a multi family property and how to go about calculating them if you live in one of the units. Im confused and I want to talk out load to see if this makes sense or if anyone has come across a similar issue. Some things to note is that i will live in one of the 2 units I will be purchasing.

These are the "hypothetical" numbers not all of them are there but this is just for the example:

Down payment 50000

Rent 1200

Mortgage 1000

Utilities $125

Insurance $100

This is very crude obviously but my point is that should the mortgage,utilities, and certain other expenses be divided by 2? Since I am living in the other unit I keep getting negative ROI numbers on my calculations but in reality that is because I am calculating for the WHOLE Property as opposed to just the tenants side.

For example, Mortgage payment for the tenants side would be 50000/2 = $25000 because that is their portion of the property. Rent would remain untouched at $1200.

Mortgage payment would also be divide by 2 in my calculations because the units mortgage should only count for $500 since there are 2. Same with utilities etc. etc.

Basically what I am getting at is that I want the unit itself to be cash flow positive as opposed to the whole property itself. Does this makes sense? That way if I can get one unit cash flowing then I can plan to move out myself to get the other unit cash flowing also. That in turn would make the property itself now cash flow positive. Is this the correct way to go about looking at this situation?