<prompt> Human: Im currently renting a house that my landlady is looking to sell. Im 24, make about 26,000 a year and have been thinking more about home-ownership and renting as a way to gain a little extra income. The house was just appraised at 230,000, which is about 50,000 more than I can get a mortgage for without having someone cosign on a mortgage and after living in the house for a year, I wouldnt offer more than 215,000 anyway. But after explaining the situation, my landlady offered to carry the note on the house. I have a verified renter already, and am confident that in a college town like mine, that I could find another renter very easily. Even so, Im afraid that I might be rushing into something without knowing all the details and caveats that might arise. Has anyone had any sort of experience with a situation like this? Any information or advice would be very welcomed. Edited phrasing.Assistant: The house was just appraised at 230,000, which is about 50,000 more than I can afford ...you make 26kyear and think you can afford a 180k house? Rule of thumb is 2.5x income. Just because you can get a mortgage for a certain amount doesnt mean you can afford that much house. Do you have a downpayment? How much?Human: I have 11,000 as of right now, and I except to add another 3,000 onto that before June, which is when I think my landlady is wanting to close. Ive heard that whole 2.5 rule, but Im dubious about it because thats only off of MY income. I live in a college town-- I will always have renters who will be paying the majority of my monthly mortgage payment for me.  <response>: 14k isnt nearly enough for a downpayment. In order to avoid extra fees, you need at least 20. You have 6. Also, you shouldnt depend on renters. What if they stop paying? You cant just evict them immediately and find someone else right away. Would you be able to go months at a time and not depend on renters at all because that could happen. And even if the 2.5 isnt entirely accurate, youre looking at a house thats almost 9 times what you make. Thats completely outside of what you can afford. And you wont even have a 10 downpayment, much less 20. Getting this place would be a very bad idea. 