Question about living in one unit of your multifamily home

[Alejandro Villanueva]

We are looking at buying our first property.  We are looking at a duplex or triplex.  We have read a lot on this site about how to run numbers on a multifamily home, but not what to expect when you are living in one of the units.  My question is when we look at the cash flow / cap rate / cash on cash, what would be a good / typical target assuming that we were living in one of the units of the duplex / triplex?

[Buddy Holmes]

@Alejandro Villanueva, I would say if the "numbers" look good for all units rented,  then look at the numbers with one tenant replaced by your use.  However now you need to consider what your own rent was or would be if you were not living in the unit!  If you rent would have been greater that what the tenant would have paid then you are definitely home free!  if not then look at how the number look with the one less tenant and your rent value added in.  You should now eliminate Property Management and do it your self.  If the numbers are so negative you can't handle it (which I doubt would be the case) then perhaps this is not a house hacking deal.

Good luck in your journey. Listen to podcast #223 and get a copy of Scott Trench's book "Set for Life".

Cheers