[Calc Review] Help me analyze this deal in Austin, TX -Jake

[Jacob Pham]

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*This link comes directly from our calculators, based on information input by the member who posted.

Hey I am super new to real estate. I have been binging the podcasts and wanted to try out the calculator. There are many assumptions I am not sure if I got right. There is this multi-family we want to buy for 515K in Austin, TX area. We would live in one side and rent the other side. Both sides are 3 bed/2baths. The calculator asks us to type in the income if both sides were rented. I think we can get 1500-2000 in rent for ONE SIDE. I conservatively put in 3K total rent if both was rented. Right now the calculator say we lose money each month because the cost is ~4K to live in the house. Yet my view is that we currently rent for about 1600. We'd be increased our living space, getting help with mortgage and paying only a small additional amount (1600 current + 1500 help from renter possibly 2000) of approximately 900 more than our current rent to be in the game of real estate.

Questions:
1. Is there a calculator for multi-families you plan to live in one side?

2. Am I looking at this deal all wrong? I am new so go ahead and tear me apart.

Thanks for any help. 

-Jake

[Aaron Gordy]

@Jacob Pham Np. Homestead exemption is for each homeowner to file with the county tax appraisal district that will allow you to claim a bit of a discount on your taxes. Each county has different discounts. Williamson county will be different than hays county. There are various other exemptions too and you should check the county appraisal district's website to get an accurate assessment of the exemptions that might be applicable. 

You are correct with your analysis. 

Also, keep in mind that your income taxes will be different for each side. And never forget the cap gains tax benefits for living in one side for 2 out of 5 years. In fact, you could switch it over after 2 years and live in the other side for 2 years and not have to pay any capital gains taxes. Check with a cpa that is knowledgeable with real estate expertise to fully understand all the tax advantages.