P&I with F.H.A. Brand new at analyzing deals

[Colton Wiggs]

I keep trying to use the rental calculator with duplex/triplex in Phoenix area while using the F.H.A loan, but the P&I keeps making every deal seem terrible. Is this a deciding factor when buying a rental home with an F.H.A, or is it something to not pay attention to.

[Wayne Brooks]

@Colton Wiggs P&I Is what it is, it doesn’t matter what kind of loan it is.  You can’t expect to break even living in one unit of a duplex (50% automatic minimum vacancy rate) or a triplex (33% vacancy minimum).  You might come close with a four plex (25% minimum vacancy) with self managing.