<prompt> Human: Title pretty much sums up our current situation. Wife has large student loans from medical school but is on an IBR plan that amounts to 10 of her income for the next few years. Not much. We have about 500k in cash and another 200k in less liquid accounts. Weve been preapproved for a 1M loan to buy a 2 family multifamily in a hot market. 4.5 portfolio loan, 25 DP, 30 yr fixed, etc. Rental income very conservatively will be about 25kyr so potentially 275k total incomeDoes this sound right? Are we getting in over our heads? Can we get a better deal? Anyone have experience with physician loans?  <response>: Are you sure your numbers work on this property?I estimate:750k mortgage 4.5 3,800 monthProperty tax 1,000 monthInsurance 200 monthMaintenance 833 monthCosts excluding voids 5,833 monthIf by Rental Income you mean rental revenue, you are losing 3,750 month.If by Rental Income you mean profits after expenses, you would need to be renting each unit at 3,958 month to make 25k yr. That is a very high rent for one half of a 2 family.It is hard to interpret your numbers to know what sort of deal this is, but unless this 2 family is in some extremely high rent district, it does not sound right.The other thing to consider, even more than the profit from rent, is what will the appreciation on the building be? You do not want more income to be taxed at high rates. You want the property leveraged up to the maximum mortgage you can get that still produces barely positive cash flow, and to make your money on property appreciation, and the part of the rent-covered mortgage that is paying down principle, so that the main taxes on the gains are lower long term capital gains taxes when and if you sell.If the property is appreciating at 3 year, and you were 80 leveraged, the return on your capital would be 15 yr plus the principle repayments on the mortgage which on an 800k, 30 yr mortgage would be about 2 yr.Its that 17 return in the early years of the rental, taxed only at long term capital gains rates that you should be looking for in a rental property. 