@Navjot Dhaliwal as this is your first deal, triple check the space rent anything below $200k here is probably going to have space rent in the $600-$800+ per month range which really eats into your cash flow. 

Depends.. are you eating the cost of the credit and background check?

Unless you have a pile of cash to put down, this alligator is going to eat your funds up quickly.Just to give you a quick breakdown. 

The real problem is the increased mortgage payment is going to eat up all your increase rent revenue.Frankly, Samer, based on the little information you've shared, this doesn't look like a good deal...at all.

Some I have seen eat the costs as owners and others I have seen raise the rent slightly to cover some of the extra costs.  

  $300k cost is me eating some of the labor I'll do. 

The more kids in a building the more it’s going eat you your money one way or another it’s going to cost you .

If he is leveraging your down payment to borrow the money.... first, you are going to have interest costs eating into that profit margin.

Carrying costs will eat you alive.The longer you hold on to the property, the more stress builds up.Visited the town planner to ensure that nothing "big" was planned - new road, new development, gas station etc.

If you can avoid FHA, it's usually a good idea so you don't have to eat the PMI for any longer than necessary.