<prompt> Human: For context we have 35k saved. We were trying to live with our parents for one more year and save another 30k combined. We were looking to buy a house at 300k and put 60 down to avoid Pmi. Recently a house came to our attention from a family friend. They own the house and used it to rent the upstairs and allow one of their friends to live downstairs at a very reduced rate. The friend has since moved on and the family friend is deciding they want to move away and no longer want the property. They wish for someone close to be able to get the property and arent looking to go through realtors so that both parties save about 20k each. The problem is that the house appraised at 400k which is 100k over our optimal range. There is a second floor tenant who rents the upstairs and is willing to sign a 2 year lease with the new owner. So me and my fiancé would live in the bottom floor 1 bedroom which doesnt bother us as we dont have any kids for the time being. The way it would work is we pay 35k as a down payment which is less than 10 so not ideal. We could put more when the time comes but we want about 10k in savings in case the renters dont pay which In my line of work seems to occur enough to be an issue. Heres the way it shapes up with a 5 interest ratemay be able to go lower with my credit union or somewhere elseMortgage-2400with pmi Taxes-700Utilities-500unsure2 car payments-750Food and other expenses-500Student loans-250Total expenses are 5100Income after taxes- 4500Rent-2700Income with out rent we lose 600 a monthIncome with rent we make 2100 a month to save for a future home so we can get our own place and keep this one and rent both floors.first floor rent was valued at 1500 so 4200 for both Without the rent this isnt an option and its another reason we are waiting. Im due for a 10k raise in June and even though its a government contract i dont Count on anything unless I read it on my pay stub so Im not factoring that into any future calculations. I have a pension but I also commit 12 of my salary to a differed comp system which I could stop for a few months to help with money but thats a last resort as Id like to keep my contributions steady.Between the two of us we also make another 1-2k a month doing side jobs but since they fluctuate I dont want to consider them a factor in our decision.Lastly the house has a new roof and aside from some cosmetic things we would like to change at some point its move in ready for us and the tenant is already there and isnt asking for any renovations.Any advice on why or why not this is a good move would be greatly appreciated. Its a good investment but is it a good investment for us at this stage.  <response>: Youre not married yet and its 100k more than your price range. Thats 2 major reasons not to buy it. 