By my estimates, the mortgage on this property is about $6,000.00 per month. The combined rent on all 3 units in the building (a commercial/retail space on the 1st floor, a one bedroom apartment on the 2nd floor, and my two floor/two bedroom townhome on 3rd and 4th floors) will bring in between $4,000 to $4,500 per month. The current owner is $2,000 per month short of what she needs to pay the mortgage (that's why she put it up for sale). And while that $2,000 buys her (or myself, if I purchase it) some equity, you could lose $24,000 a year for years before you even begin to build any equity.
Living there while I own it doesn't change this scenario at all. Let's say I moved from the two story townhome into the one floor apartment and rented out the commercial space and the two story town home. I would be collecting about $3,000 to $3,500 a month rent and be stuck paying $3,000 a month of the mortgage for a one bedroom apartment. And wouldn't it make more sense to not do that, and just rent an apartment for $1,000 a month or buy a condo for $2,000 a month? No matter how I look at it, it appears to be a $2,000 a month sinkhole until rental prices start to go up that high in the next 10 or so years. Am I wrong?