🏠 How much would you save owner occupying a duplex versus renting?
🏘️ Housing Setup
A 29-year-old nurse shared his plans on r/personalfinance to navigate the biggest financial move of his life. With $75,000 in savings and a solid income, he wants to buy his first duplex.
By living in one unit and renting out the other, he hopes to offset his mortgage. We'll compare his new effective housing cost against his current $1,250/month rent.
🏦 The Loan Advantage
Through the RI Anchor Home program, he qualifies for a 4% interest rate with no private mortgage insurance (PMI). He plans to put $50,000 down to keep his monthly payments comfortable.
State first-time buyer programs like this can dramatically increase purchasing power. Adjust the numbers below to see how the math changes with standard market rates or different down payments.
🛠️ Income & Upkeep
Ideally, the second unit will rent for $1,750 to $2,000 a month. Because he previously managed rental properties and is extremely handy, he can handle his own drywall and plumbing repairs.
This DIY skillset allows him to budget much less for maintenance than a typical investor. We've set the default maintenance budget to a highly efficient 0.5% of the home's value.
🔗 See Also
For further related reading, check out:
📊 Results
Loan Amount
Principal & Int.
Tax, Ins & Maint
Gross Payment
Housing DTI
Net Housing Cost
Savings vs Rent
Bottom Line
Buy duplex
Calculator updated by heyfinfam (v26.9.0) · View history
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