Quote from @David M.:
@Mario Morales
A conforming loan lender (is this property residential, 4units or less?) will recalc on 75% of the rent. So, your income is ~$35700. Net income would be $8362 annually, or $697/mo. So, that's good approx servicing about little less than $100k or so... Basically, add $697/mo to your monthly dti calc on your personal income side (I do my calcs split between "personal" and "rentals", then add them together)
Don't forget that they usually look at the last two SchE.
Is that what you were asking?
For yourself, I suppose its however you want. You can come up with any set of statistics to make yourself happy, or sad. You made some $20k this year, or some $1600/mo. We have threads going on with people trying to get $2k/mo just so that they can retire. Is there any expenses you can minimize to increase your profit?
Is that what you were asking?
Yes, it is a legal 2 unit. I have a non conforming garden unit, which I will fix up and rent out at some point. I guess what I didnt make clear, is that in this sheet, I didnt factor in what I pay towards principal in the monthly mortgage payment, just the taxes and insurance. As you mentioned for myself, do I subtract the 12000 i paid towards principal and say I really lost $4000 (principal paydown $12k- Net income of $ 8362 = 3638, which would be a loss). I think I know why its not a loss but still trying to figure it out
