Tips for running numbers on a duplex

[Josh Donlan]

Hi, I have been looking at duplexes in my area (Peoria, IL) to house hack. I plan to live in one unit for a year or 2 and then move out and rent both sides. I’ve been running my numbers as if I were renting both sides to see if it is a good long term investment. I don’t have much cash available for a down payment so I got approved for a 3.5% down fha loan. I have been running my numbers with this 3.5% down and it is very hard to find a deal that hits my goal. My goal is to cash flow $100 on each side. This is much easier if I put down 20%. My question is should I run the numbers as if I were putting 20% down and try to pay the principal quickly and refinance to a conventional loan when I have 20% equity? Or should I continue to hunt for a cash flowing deal at 3.5% down?