Well here goes. asssuming gross annual operating income is $78,000. Subtract 20% for expenses… normally I would take out 30% to be on the safe side but, since you will be your own property manager we will keep it at 20%($15,600 in expenses. This leaves you with $62,400 of annual rents, so based on a 30 yr loan @ 7% on a loan of $780,000 your annual debt service would be $62,272. So I would not want to take out a loan greater than $780,000 and this is not including the loss of rents for you taking up residence in one of the units. I hope this helps.
I am also looking to buy a multi family for some positive cash flow, they are just real hard to find…..
