Buying an SFR or Units?
- Robert Silva
- 4 days ago
- 1 min read
Going Off the Beaten Path Might Save You Some Money!
Which one would you choose? Let’s review only one part of the equation: Sales Price of a $1M and let’s assume 5% down or $50K, your loan would be $950K. Principal and Interest would be $5,849.31. For the purpose of illustration, let’s leave, Taxes, Insurance and PMI out. So, your payment would be $5,849.31.
Now, let’s review with some units. Let’s say you buy three units for the same price of $1M. And the payment is the same $5,849.31. However, you are going to live in one unit and rent out the other 2 units. Let’s say the other two units are 1 bedroom each and you rent them out for $2K each. That is $4K coming income. Now the lender will only give you 75% of the rent, so let’s say that is $3K. So, your payment is $5,849.31 - $3K, your out of pocket is going to be $2,849.31.
Take a look and let me know what you think? I would love to hear from you….
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