Negative cash flow ?

[Reub Geimah]

Hello everyone,

So I am working on buying my first property. It is a duplex and the seller is asking for 265k, the duplex is located in Savannah GA. After running my number I've come to the conclusion that I might be negative cash flow since I intend to live in one of the units and rent the other, after utilizing rentomater and also Zillow I realize that at most I could rent the other unit is for 1100 at most since it's 2bed 1 bath. I am military so I will be using the VA loan and my mortgage will be about 1500. Should I go ahead with this purchase or wait ?

[Colin Reid]

You've gotta count your rent in the analysis. So if your unit would also rent for $1100, is it a good deal? 

I'm doing the same thing right now. I figure I'm only paying about $600/mo to live in a great neighborhood, while my tenants are paying $1300 toward my mortgage. As soon as I move out, there will be another $1200-1300 coming in, and suddenly the property matches the analysis I did.