The rule of thumb is that banks won't lend more than about 5x combined annual income on a house. My first house was right about 5x my income. I had 20% down and excellent credit though, and a plan to rent out the spare rooms, which I'm still doing.
I like the idea of renting to others on the same property because it's nice to have company and easy to work out any issues should they arise.
Quote:
Originally Posted by JSH
I would not buy a 6 bedroom house in Silverton with the intention of renting it out. I can't image that area has many renters looking for a house that big. If zoning allowed it I would split main house into a duplex.
Silverton, OR: Population 9K, no industry, median household income of only $60K and 45 miles from Portland.
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I should look into the zoning rules. As it is, the house is only 4 bedroom 2.5 bath with the ADU containing 2 more bedrooms and a bath. It is effectively a duplex.