All Forum Posts by: Madeline Graham

Thank you, Tim! So you're saying this sounds like a reasonable deal? My PITI would be $1900 to $2000 and my rental income would be $1400ish. Yet what I've seen is to account for about 40 - 50% of that for expenses. So:

$2000 (PITI) -

$1400 (rent) +

$700 (expenses)

= $1300

So it's more like $1300 than $700. Unless what you're saying is that $700 is too high for expenses in an owner occupied scenario. I'm also not certain if that half-for-expenses is supposed to account for Insurance and Taxes, which I've already included with the PITI (?)

Thank you for your already thoughtful response, just trying to get my numbers straight. 

Something important to note is I already own a house that I would be selling - so this isn't me owning or not owning - and I'd be putting down a full 20%. PITI on the house is ~$1250 a month. My main purpose was to get my monthly costs much lower by moving into an owner-occupied duplex scenario plus be gaining equity in a more valuable property, but if the numbers I have are right it's not much better in terms of costs per month than my house and then wouldn't make sense.

Northeast - Audubon Park/Windom Park and vicinity. Ideally something that doesn't require a lot of work, both units 2 bed/1 bath or more. I think I saw something recently that was 325,000 but it ended up having multiple offers so probably sold for more!

I was analyzing it assuming some day I might rent out both units :-) Counting expenses and assuming both units are rented is where I got to the $316.

With me living there, and counting expenses, I'd be paying ~1150 or 1200 per month. I counted expenses as 15% maintenance, 10% vacancy and 10% property management (I think I saw that on here?) Hope that clarifies!

I'm looking into owner occupied duplex purchase. Right now, list prices are between 350 - 400,000. Rents are about 1350 - 1500 for 2 bed 1 bath units. I'm currently looking at a 350,000, would put 20% down. With both units rented I'd be bringing in $2,900. Taking into account taxes, insurance, vacancy, maintenance the profit is $316. For owner occupied, I was told to only count half of the rent against mortgage. With a mortgage of $1900, that means I'd be responsible $1150. Realistically there is nothing much cheaper than $350,000 - is it even worth doing this? Any upsides I'm not thinking of to owning a duplex versus a house?