“What if You” – Joshua Radin
Single Family Example vs. Multi-family Example
- You, the buyer, wants properties in an area you can’t afford.
- PITI is $1,166; too high for you, the borrower, or out of your comfort zone.
- But, you are a motivated buyer.
Scenario: Buyer wants to purchase a home (an example).
- Income $4,000/mo., credit 640 or higher.
- Limited funds for down payment: 3½%.
- Minimal monthly consumer debt.
- Estimated maximum purchase price listed below and interest rates at 4.00% (just to round off).
Single Family Multi Family, 2 Unit
Sale Price $253,000 $300,000
Est. PITI $1,166 $1,406
Est. Rental Income $0.00/mo $850/mo.
PITI Minus Rental Income $1,166 $556 / mo.