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I’m in my mid-20s, and looking to buy a house in Bed Stuy, East Flatbush, or PLG (particularly the latter because I want to be close to the park). My current income is approximately 60K, however there is a chance that I may not have this job for much longer. I’ve been lurking on this and other forums for the past few months, learning as much as I can about real estate, virtually from scratch (my family never owned, and I grew up in a rental).

I want to buy a 3-family with a finished basement, effectively giving me 4 units. I would live in the basement apartment, and rent out the other 3. I’m particularly considering new-construction houses.

I have a couple of quick questions for those of you caring to chime in, particularly if you have some knowledge or experience in this area:

1. When considering a 3-family house (or even a 4-unit, including a basement), what percent of your monthly expenses (mortgage payments, taxes, insurance, etc.) do you believe the rent roll should cover?

2. How would you gauge the rental market in the aforementioned neighborhoods? Given that it is softening considerably in prime neighborhoods, this will eventually trickle down to the fringe neighborhoods as well, wouldn’t you say? So overall, what would you say is the best way of safely estimating your income from rent? For example, the banks only consider 75% of the rental income to account for vacancies, etc. but do you really think it’s necessary to assume that the apartment will be vacant 3 months out of the year, assuming that the landlord is reasonably apt? Should I rely on rents today’s rents (for example, from Craigslist) and apply a certain discount for the future? These are just two examples, but the general idea is, How should I safely estimate my rent flow so that I make a financially sustainable decision, using best practices from the present and looking a bit into the future?

Any comments or personal experiences welcome!