Should I use VA to house hack in San Diego?

[Meng Long]

Hello BP,

I've been a long time reader but have been hesitant to post. I am in the navy and have recently moved to San Diego. After working with Navy federal credit union, I was able to get approved for ~600k(1-2 unit SFR), 30yr foxed,4.5%interest, 0%down, and 2.2% VA funding fee which is wrapped into the loan.

I want to take advantage of the current low interest rate and house hack in San Diego but it’s been nearly imposible to find a break even cashflow deal. My goal to purchase a duplex, rent out one unit and live in the other. I’ve analyzed dozens of properties and only a few even come close to break even. (Note: the breakeven cashflow is based on both units being rented out)

My questions are, should I even be looking for breakeven cashflow deals?  Maybe im too conservative when running my analysis and overlooking good opportunities? What would you do in my situation? Thank you ahead of time for the inputs. 

Meng