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Updated over 10 years ago,
Owner Occupied - How should I calculate expenses?
Sorry I can't delete duplicate post.
I'm purchasing a 2 unit that I will owner occupy (OO) for the first year. Expected rent $2300 fully rented.
Question is, should I budget as though it will be fully rented or the actual rent for that year? For example: vacancy $230/mo (10% of $2300 fully rented) or $115/mo (10% of $1150 actual rent). When I calculated my numbers before purchase I was looking at about $500-$600 cash flow fully rented (self managed). The rent for one unit would just about cover the mortgage save for about $100. (P.S. I'm not asking about the vacancy rate for my market).
Thanks in advance.