<prompt> Human: Hey everyone, I have a little over 40k in savings, currently 23 living with my parents. My plan is buying a 3 bedroom home, living in 1 room, and renting the 2 other rooms out. Only debt is student loans which are high 3 and low 4 low enough to warrant investing elsewhere and I contribute to retirement already.Here are my financial thoughts on buying a home: Purchase 125,000 3 bedroom home w20 down, so a 25,000 down payment 5,000 closing costs Mortgage and interest of 600, taxesinsuranceetc. for 300 900month cost. Mortgage will be building around 4,200 in equity every year Rent each room for 900month rent is high in my area this is actually the low end estimate. This will cover my 900 monthly cost, and will be a 900 profit from the second tenant, so 10,800 profityear. Ill figure 2,000 a year average in repairs. I work in construction management, so most repairs I can handle myself for cheap. 3,000 in utilities, services, and maintenance as well.In summary: 25,000 down payment 5,000 closing costsfees -30,000 initial investment 4,200 in equityyear 10,800 in rent -5,000 repairs, utilities, services, and maintenance 10,000 profitTotal: 10,000 off a 30,000 investment, a 33 return. I figure renting an apartment for 900 would be -10,800 so theres a 20,800 delta here.Is this a good investment, and the best investment that I can make now?Edit:I dont want to disclose my location, but yes, in my city there are 3bed 125k homes where you can rent rooms for 900month. The homes arent beautiful, but they arent unlivable either. The cheapest room in a home for rent within a 15 mile radius is 850 for a room, with hundreds of rooms available at higher prices. I know how crazy it sounds though, but its the situation in this area right now. I think developers have taken advantage of the area, knowing its low income and people cant afford down payments, so they get squeezed by high rents you wont find an apartment room for less than 1,000 here.Assistant: You didnt account for tennat churn. When one or both of your tenants leave, youve got to get a new one. That costs time and money. Also, youll want to consider a catastrophic break fund. If one of your tenants ruins your carpet, destroys your bathroom, etc. Are you able to afford fix it?And relationally, are you good living with folks? What about folks you dont know? What rules will you have in place regarding parties, TV, kitchen usage, etc.If youve got responsible friends who need a cheap place to stay for a few years, this could be great. If not, there are a lot of hidden costs here that Id recommend factoring in. Human: What would you factor for vacancy?A coworker of mine has a duplex and rents it out. He used a firm that will find suitable, vetted tenants for him which cost him half a months rent, which isnt bad.  <response>: I mean that could work, but that company doesnt have to live with the person, they are going to find someone who they think pays rent. Which is great if your renting out a separate home. If your going to live with them you might want to screen them a little harder. 