If you can document that you have lived in it for 2 out of the previous 5 years then you can exclude the gain from this allocation  (approx what - 20%???)

Did you pay out of pocket or you allocate the cash flow towards the principal?

This is a great exercise as it gets you thinking about all the types of expenses (ie. will there be a prop. manager, what will you allocate for repairs and maintenance, cap ex, utilities, etc. 

You'll find a host of percentages to allocate for each.  

The total costs of financing a new property may be allocated to that property regardless of the collateral used for the loan(s).

On a practical level, a custodian just wouldn't allow the investment as the allocation has to then be for something other than dollars.

In other words 6.25% of your purchase price is allocated toward land, or in this example, 6,250.

This is why we typically just take the $0.xx/mile and punt - - easy to do and it's a fair allocation.

How much capital are you planning on allocating?  

I sometime allocate 75 to 100 per month for unexpected expenses depending on age and overall condition of property.Large capital expenses will need to be considered as well depending on the age of the mechanicals, IE. roof, HVAC, water heater, appliances Etc...Occupying a multi family is a great way to get started and get your feet wet.good luck!