The ones you saw probably doubled because at one point, they were taxed at the 1% owner occupant level.

See the 3 things after the financialsPurchase price: $390,000I can get financing at 25% down, 5.5% amortized 25 yearsPer seller:90% occupancy or higher since they owned in 20028 - 1 bed/1 bath at $550 per month6 - 2 bed/1 bath at $650 per month*One of the 1 bed/1 bath has an onsite manager/handyman living for free so there is no property mgmt costs in the expenses*Owner pays water and trash2017: Total Operating Income: $79,989.50Expenses:- Lawn Maintenance: $1,800- Water: $6,816- Trash Collection: $1,740- Pest Control: $820- Supplies: $4,280- Repairs: $9,852- Insurance: $4,153- Property Taxes: $10,515Total Expenses: $39,976.82NOI: $40,012.682016:Total Operating Income: $83,154Expenses:- Lawn Maintenance: $1,800- Water: $5,820- Trash Collection: $1,680- Pest Control: $604- Supplies: $6,639- Repairs: $9,910- Insurance: $4,153- Property Taxes: $10,521Total Expenses: $41,127NOI: $42,027So if I’m all in at $115k (down payment + closing costs), assuming 40k NOI, i’m looking at 16.4% cash on cash with one unit vacant at current rents (without anything set aside for capex however)WHAT WORRIES ME:1) No washer/dryer connections AND no laundry facility on site (would have to build a new building and run new plumbing to add one).

Unless she’s in her 80s you’re probably looking at a multiple decade occupancy here.

Sounds like a horrible idea to me....If your plan is to sell it, then don't complicate it by trying to save a few bucks by screwing a new tenant.... yes having a vacancy cost $$, but screwing someone by letting them move in with the full knowledge that you may very well terminate occupancy almost immediately is not cool in my book....but to each his own.....

I will need to fill 2 units after close, but at 100% occupancy I will cash flow around $3500 as of now.

The lender is more than likely going to be more concerned with the owner-occupancy status than the complex is as there are rules that most lenders will not lend on condos that are not at least X% owner-occupied.

(I had a cousin who had to rip out the carpet, carpet padding AND subflooring due to previous occupants who had dogs who peed so much in the house they had to gut it to the joists and start over.)

If this were the case we could continue doing this every year or so as long as she lived there for a year and met the owner occupant requirements.

First time buyers pump up prices and eat into returns.My investor clientele (which made up the vast majority of my business at one point) is slowly becoming regular owner occupant...

They are in fact able to factor in the potential market rents on the other 2 units on the triplex with the owner-occupant living in the 3rd.