., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

So for you to lower your taxes, you have to show where similarly valued houses that are selling at the same time you purchased your house sold for MORE than 15% below what you paid.  

I think I’ve covered my bases, but I’d love to connect with others working on similar models or interested in this niche.Looking forward to hearing your thoughts!

Unless your digging deep in that file and pulling from when the game was most similar to todays. 

Quote from @JD Martin: Quote from @Elizabeth NA: Good evening Alesa, I am reaching out because I would love to speak with you about your experience as I have found myself in a VERY similar situation with Cyrus Gordon and have found he has been sued over 5 times in New jersey including from me.

Personally, I'd start looking in markets you're familiar with, similar to what you said in your post.

Does not affect your debt to income for future loans in the mortgage industry (auto loans could look different, but i would think similar so hopefully no worries there). 

It is crazy how similar my process has gone.

@Jared SmithIt is great to hear from someone else who was in a similar situation I am in right now. 

My MIL just did something similar- moved in to a retirement home and rented out her primary residence.