Rent out front house and live in granny flat - is it possible?

I'm wondering how possible it is to do so that I can live in the suburbs I want, with some garden (and maybe a pool).

• Location Sydney North Shore


• Buy existing property with big land


• Add pool


• Add granny flat - a big 1-2 bedroom. We don't need a mansion.


• Fence off the flat along with the pool


• Rent out the old house

Let's say the place plus flat and pool cost $1.4M

• Loan $1M ~ @7% interest rate $5,834 per month IO loan


• Rental for 3 bed house $700-750 a week, $2700-$3000 net per month after costs etc

Shortage - $2,834-$3,134 per month ~ $650-$720 per week. Affordable even with 1 person salary.

Put everything else in offset, I get a place with garden and pool



Assumptions:

• bank would lend


• I can afford repayment when the front house is vacant

Do you think it's possible? :D

Rent out front house and live in granny flat - is it possible?