Am I being too cautious when buying my first multi-family home?

[Johnathan Walton]

Hello, this is my first post and I'm in the initial stages of learning about real estate investing.  

I want to house hack a duplex (possibly triplex). It'll be my first/only property but I want to be able to afford the entire mortgage alone as if there are no tenants. I feel like this eliminates the risk associated with vacancies and renters that fail to pay but is this too cautious of an approach and am I just limiting myself on what I can buy without good reason?

My only other thought is to use the emergency fund I'll have to cover several months of expenses if I do have a vacancy or if I go through an eviction process.

Thanks!

[Anthony Gayden]

Originally posted by @Johnathan Walton:

Hello, this is my first post and I'm in the initial stages of learning about real estate investing.  

I want to house hack a duplex (possibly triplex). It'll be my first/only property but I want to be able to afford the entire mortgage alone as if there are no tenants. I feel like this eliminates the risk associated with vacancies and renters that fail to pay but is this too cautious of an approach and am I just limiting myself on what I can buy without good reason?

My only other thought is to use the emergency fund I'll have to cover several months of expenses if I do have a vacancy or if I go through an eviction process.

Thanks!

The way you are doing it is smart. Eventually, you will have a vacancy and that means you will have to pay the entire mortgage on your own. I would suggest an emergency fund that would cover 3-6 months of mortgage payments.