I want to buy a two-unit property and rent out half: what can I afford?
Assume you can spend around 30% of what you make on housing. Once you have that number, you can add to it three-quarters of your expected rental income.
So if a unit rents for $2,000 a month, you expect $24,000 of rental income a year, but the bank only lets you count $18,000. That way, there’s wiggle room if the unit sits vacant for three months or so.