Rent out 3 and live in one.Better breakeven occupancy paying the mortgage.

If you are going to rent it out, NOO, Dodd Frank does not apply.If you are living in it as an Owner Occupant, OO, I would get a RMLO involved. 

What has your occupancy rate been so far, Gary?  

Since the property is currently vacant, all those numbers are currently 0.After rehab and occupancy, assuming the numbers he listed were accurate and assuming the 50% rule, the NOI would be about $54,000, the cap rate would be about 12%, and the ROI numbers would be dependent on specific financing terms.I don't know where this building is, but assuming a local cap rate of 10%, the ARV would be somewhere in the $500-600K range, so a purchase price of $250K with $150K repairs isn't a huge discount, and probably not enough that he'd be able to easily wholesale the property.That said, market conditions in the specific location would contribute; if apartments are selling for a premium in that area, it might be a good deal...

So you'll find a house that sells retail to an owner occupant for $50K next door to an REO that was sold in bulk for $7K, so the comps are not a good measure of value.The ones selling cheap need lots of rehab and the ones selling retail are in very good shape, so this is a city in major transition.

I believe the OG poster stipulated that he was referring to onwer occupant only, as it is clear that using leverage (debt) on renatls has an advantage in that all the interest paid is deductible and the debt allows the investor to apply leverage responsibly to increase ROI.However, I do agree that anyone who states someone should keep a mortgage simply for the reason of the deduction does not understand the numbers as explained by Daniel.

You will need a very high cap, not lower than 70 occupancy, and a LTV under 60%.

It was a cross reference book that listed names and addresses and phone numbers and even occupations.

Also the condo needs to be approved; occupancy rate needs to be higher than 50%.

If you lived far from your rental you don't want to have a customer call you at 11pm and angry that they can't access their rental.Has anyone researched (guesstimated) what yearly occupancy rates to expect?