If the property is deeded as one parcel your assumptions may apply but subdivision or other expenses to break it out might be expensive. 

Some of you seem to have made a lot of assumptions about me, based on the fact that I simply want to grow my tax savings, LOL.

@Joel Owens I have factored all leasing costs, capital improvements, and a hefty vacancy factor into my assumptions.

I'm offering my opinion, asking questions and making assumptions all at the same time.

Be carful you do not make assumptions based on a indivulaes chosen career path.

Based on some assumptions... 

In most cases, you can live in it for 1 year and fulfill the promise you will make in order to get it.Here is a Spreadsheet which makes the assumption that a Owner Occupied Mortgage is at 4% and a non-Owner Occupied is at 5% fixed rate Mortgages:You will see if the above scenario was the case, you will save $42,773 over a 30 year period.Just remember, you don't have to live in one of the units forever.

My assumption would be that they would want to see an offer letter and your first 2 pay stubs (after 30 days or so). 

Costs have the potential to go down significantly as I will be doing the finish work, but I'm making my assumptions as if I subbed out everything.Estimating costs by straight square footage is not a good tool for a project of this type, as it really doesn't account for tying in utilities, permit fees, raw water fees, or possibly adding a water tap. 

COST ASSUMPTIONS Purchase Price $65,000 Down Payment $13,000 Improvements $5,000 Closing Costs $3,000 Other Total Costs $73,000 Cash outlay $21,000   INCOME ASSUMPTIONS Total Rent 100% $770 Other Income Vacancy Rate 10% Total Gross monthly $693 Total Annual Gross $8,316   TOTAL RETURN   Appreciation 1.00% Equity Tax Break/Penalty Total $650  FINANCING ASSUMPTIONS Down Payment 20%   Financed Amt $52,000   Down AMT $13,000   Interest rate 5%   Mortage years 30   Mortage PMT $254 (includes tax and insurance)   Including tax and ins.