House hacking

[Melanie Mayeux]

My sister is looking at a mulit-family home outside of new york.  She will live in one side.  Can someone tell me how to analyze this type of deal?

[Ken Douglas]

She is basically leveraging her money. Say her mortgage is $1800 per month and rent on the second unit is $1100. She will only have to pay $700 toward her mortgage.

Now imagine if she earns $2900 per month. Once he second unit is leased, she will have $2200 left over from her income. Now she can take that money and reinvest in a second home that generates cash flow.

Where is she moving to?