Not commercial just small scale residential. Has/is anyone out there doing it? I've run the numbers with as much information as i can get which isnt everything and it seems too good to be true. Perhaps i could lay a few things out and you guys can poke holes in the plan or identify errors/weak points or even something ive completely missed. Im building a PPOR on a 500m2 block with some basic covenants. Its a 2 story 190m2 structure that has two independent (private entrance) units with their own kitchen and bathroom each about 21m2 total. The rooms will have a permanently blocked doorway for compliance. Total cost of land+build: 650k Mortgage: $2600 Desktop rental appraisal of both units: $2400 (less associated insurance, agency fees etc). The primary living space appraised: $1800 The first question i have is that if this rental income is deemed as income, that you pay tax on would that not increase serviceability to replicate this process immediately? Does the second home loan application for an investment have to go through any additional obstacles that reduce serviceability? M.