Deal Details
Property
$
%
= $20,000
%
$
Auto-est. 3% of price: $12,000 · ↺ reset to estimate
FHA: MIP on all loans · Conventional: PMI if down < 20%
Income
$
What you'd pay if renting this unit from someone else
$
Total rent from all tenant units combined
%
$
Expenses
$
$
$
$
$
Live Payment Estimate
Loan Amount
$380,000
Principal & Interest
$2,528
PMI
$253
Tax + Insurance
$550
Est. Total Monthly
$3,331
Marginal — Proceed Carefully
The numbers are close. Consider negotiating the price or finding higher-rent tenants.
B−
Above Avg
Monthly Benefit
+$359
Cash flow + housing savings
Net Cash Flow
−$1,441/mo
After all expenses
Cash-on-Cash Return
-54.06%
Annual / cash invested
Total Return
13.44%
Including owner savings
Cap Rate
4.02%
NOI ÷ purchase price
Gross Rent Multiplier
8.3×
Lower = better value
Tenant Coverage of Your Monthly Expenses
Monthly Breakdown
| Item | Monthly |
|---|---|
| Your unit — housing savings | +$1,800 |
| Tenant rent (after vacancy) | +$2,090 |
| Mortgage (P&I) | −$2,528 |
| PMI (0.80% annual) | −$253 |
| Property tax | −$400 |
| Insurance | −$150 |
| Repairs & CapEx | −$200 |
| NET MONTHLY BENEFIT | +$359 |
Cash to Close & Key Numbers
$20,000
Down Payment
5% of purchase price
$12,000
Closing Costs
Estimated out-of-pocket
$32,000
Total Cash to Close
Down payment + closing costs
$380,000
Loan Amount
30-yr @ 7% — after down payment
Total Monthly Payment (PITI + PMI)
P&I $2,528 · Tax $400 · Ins $150 · PMI $253
$3,331
per month
Lender Qualifying — 75% Rent Rule
| Item | Amount |
|---|---|
| Projected gross tenant rent | $2,200/mo |
| Qualifying factor (standard 75% rule) | × 0.75 |
| Rental income credited to your qualifying income | +$1,650/mo |
| Annualized qualifying rental income | $19,800/yr |
Most lenders allow 75% of projected rental income to count toward your gross qualifying income when purchasing a multifamily property as an owner-occupant. This offsets your debt-to-income ratio and can help you qualify for a larger loan. Ask your lender — some FHA and Fannie Mae programs use slightly different factors.
Educational tool only. Results are estimates based on your inputs. They do not account for taxes, appreciation, depreciation, or all local market variables. Always consult a licensed financial advisor and real estate professional before making investment decisions.