Property with 4 rooms rented out

[Anna Johnson]

We got a 2 family house 5 years ago where we live in one of the units. we've saved up some money to buy another property and thinking about what would be our best long term move. It's enough money to buy a decent 3 bedroom in the area but since I'm home with the kids I would like something more of an investment thinking ahead. I got in touch with a realtor who sent me this property as an option and I would like to hear your input. It's significantly more expensive ($530K) than other 2 families on the market I guess justified by the higher rental income. The difference is that it's a 3 bedroom on the first floor (where we would live) and upstairs are 4 bedrooms that are rented out through a boarding certificate. They have cooktops and are all sharing one bathroom. According to the realtor there is no vacancy and claims there's even a waiting list for the rooms. We are in Bergen County NJ close to NYC so with the high taxes and prices we're just not getting the same deals as if we lived somewhere else, since rents seem to be similar anyway from other parts of the country.

Here are the numbers:

http://tinypic.com/r/5ls579/5


Since we would be living in the apartment the $1900 would not apply. Does this still seem like a good investment? Too much risk? We would apply for a $430K mortgage over 20 years at 4.5%.