Good morning Account Closed,What you are describing here is house-hacking aka investing in a multi-family residence where you would occupy one unit and rent out the rest.I think house-hacking is one of the best strategies for new investors.

Did you factor in their move in costs?

I'm flying in to do the final walkthrough in person Friday morning and closing Friday afternoon.

My personal opinion would be to work the numbers starting with the rent, factor in your expenses, and determine your operating expenses.  

I never thought I'd have to factor in the potential of a NEIGHBOR being the problem instead of a tenant, but I guess that's the beauty of landlording.  

Also, I would have to factor PMI? 

Good morning, I am currently visiting Canada for the holidays & I found a few vacant properties.

Joao, morning.

Here are the details: Duplex built in 1999Target Purchase Price: $392,000Unit 1: 4 bedroom 1.5 bath rents for $2100/monthUnit 2: 3 bedroom 1.5 rents for $1900/month (we would occupy this side)Total monthly income: $4000Expenses:Principle + Interest: $1950Insurance: $100Mortgage insurance: $253Taxes: $720Vacancy (5%): 200Maintenance/repairs: $330 (1% home value/year)Cap Ex (5%): $200Tenant responsible for utilitiesTotal expenses: $3753 (this does not factor in property management as we will be owner occupying, however if I factor in property management at 9%, it would add $360 which would be negative cash flow).Total cash flow $257CAP rate: 6.4%Cash on Cash return: 9%Without property management we should have positive cash flow, given that I am estimated expenses correctly. 

What are the factors that should be considered?