Also, I'm not sure how you're paying attention to it on the tax side, but the unit that you are living in's profit at sale is calculated differently than the other unit that you're renting out.Once you move out, that unit is officially available for rent so from that point forward, any profit gained at future sale will be calculated starting from that point and will be taxable.

The problem is that your debt payments are going to basically wipe out that $400K profit unless there is room to increase revenue or reduce expenses.

We share the profits and split losses if any 50/50.  

This is essential to running these profitably. 

I have found that the profit margins are very low in this model if the house is in a C/D neighborhood because you are limited to the amount of rent you can charge for each room.

What was your upstart expenses and do you consider it a profitable endeavor or something that just waste time?

A good REI bookkeeper will help keep everything neat and tidy throughout the year so you can make educated decisions in your business, potentially creating more profit and less headaches.

Could be very profitable if you made this your job though.

It has been profitable for us but competition has risen in recent years so we continually work to refresh our places and marketing approaches.

You Make More Than Zero DollarsSimple math: 100% of no deal = $0.00 every time.A good deal, even if you’re getting only a piece of the profit, still makes you money.