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Mentor
To do a proper analysis you need all expenses, insurance, taxes, utilities you would pay for income generating portion, then figure out your market rent for the primary residence portion if you rented it to someone else. You’ll need to get the full income generated. Once you have all those number I can run an analysis for you. Based on 60k a year total income, 1.8 million purchase, assumption on taxes/insurance, it’s a negative cap rate. So that’s not good, but the full picture will allow you to compare this deal to other deals. I think we’re missing too many numbers here to give a proper analysis.
Subject Expert
How much are you putting down? How much do you have saved on top of your down? Are you planning to live there, or is this solely an investment?
Subject Expert
How much do you have in your rainy day fund after the $500k down? Also, what do you think market rate rent is for the rentals, and are there leases in place?
All of these details are important. As long as you have an extra 6 to 9 months of mortgage payments assuming no income from the rentals, I think you’ll be fine. If you have less than that, I’d be a bit tentative.
5k per unit or 5k total?