ERIC HAMILTONMORTGAGES REIMAGINEDStart my application

YOUR MORTGAGE, EXPLAINED

Compare a four unit home with the responsibilities of being a landlord

Eric’s November 2023 example considers buying a four unit property, living in one unit and renting the others. Rental income can change the comparison with a single family home, but the budget must include more than the mortgage less rent.

By Eric Hamilton · Published October 7, 2026

Originally uploaded November 7, 2023 · 1:00 · Watch on YouTube

Written companion added October 7, 2026. Adapted from Eric’s video captions with source checks; not a word for word transcript. The recording retains its original date.

Understand what the example does and does not show

The recording describes a buyer with a reported monthly out of pocket amount of $475 after rent. It does not provide a complete operating statement or explain whether that amount includes maintenance, vacancy and future capital repairs. It should not be described as the total cost of owning any four unit building or a result another buyer can expect.

Separate qualifying income from cash actually available

Eric mentions using a portion of rents to qualify. The lender’s qualifying calculation is different from a household’s monthly cash flow worksheet, and current rules depend on the program and documentation. Ask how leases, market rent and rental experience affect your application. The video’s percentage and down payment statement are not a universal offer for every borrower or four unit property.

Price the work of ownership

Compare a single family option with the multifamily building using realistic expenses for both. For the rental units, include a vacancy allowance, maintenance, insurance and management, whether you hire someone or do the work yourself. Keep reserves for unexpected repairs and confirm that you want the responsibilities of a landlord. A lower projected monthly contribution is useful only if the assumptions are credible and the arrangement fits your life.

Is the $475 figure a quote for my purchase?

No. It is a reported outcome from Eric’s example without a complete budget attached.

Does living in one unit automatically make every low down payment program available?

No. The borrower, property and proposed occupancy must satisfy the specific program requirements.

Sources and scope

Adapted from captions of the video published 2023-11-07. Statements about rates, inventory, programs or events describe the original recording and are not a current quote or availability promise.

  1. Fannie Mae: Rental income guidance Accessed October 6, 2026

General education, not a loan quote, approval or an individual recommendation. Ask the appropriate professional about your situation.

KEEP LEARNING

Your next questions

Can buying a duplex help me build wealth?

It can create housing and rental opportunities, but also adds property, financing and landlord responsibilities. Compare all costs, vacancy and cash reserves before relying on rent to make the payment. Loan eligibility and the amount of rental income that can be used depend on the program and documented circumstances.

Read the answer

Can a Chicago three flat make your own housing payment smaller?

Living in one unit and renting the others can offset a mortgage payment. The useful question is how much cash you would need after vacancy, repairs and the full cost of ownership.

Read the answer

A low mortgage rate and a move: follow the sale proceeds

A low rate is valuable, but the decision to move also involves equity, other debts and the cost of the next home. Start by showing exactly where the sale money goes.

Read the answer

Check the $250 payment reduction before calling it savings

The video's move-up example can illustrate monthly payment relief. It cannot establish total savings until you include property expenses, transaction costs and the balances that remain over time.

Read the answer

Browse the answer library · Read Eric’s blog · Watch the video library