Quote:
Originally Posted by Alex from Montreal
From personal experience, I doubt buying a double will pay the majority of the note/expenses of the property. Initially, the rent of tenant will cover the taxes and insurance and a very small percentage of the mortgage. It is only 25-30 years later once the mortgage is paid for, the tenant's rent will suffice to pay most or all (assuming there are no major work needed in house) expenses and allow you to live mostly "rent free".
And in today's market, renting both units most likely will not cover all the fees and expenses in the property; As an owner, you'll still have to pay for some of the expenses out of your pocket even if you don't live there.
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I've seen this done more than a few times where the owner/occupant collected enough to cover 2/3 of the expenses (mortgage, insurance, taxes, etc..) , it depends on your market, how much rent is going for, and how good of a deal you got on the double, your interest rate, etc....... All things you can caculate before you buy it. If the deal doesn't look good then you look for a better one.