I’m a new investor - Is my Denver house hack strategy sound??

[David Colthart]

Hello Bigger Pockets community!

This is my very first post - I am a brand new investor looking to purchase my first house hack in the Denver metro area and would very much welcome your informed perspective on my current strategy. I have thick skin so PLEASE feel free to poke holes in my thinking and show me where I might be off base.

My situation: I am mid-30's with a wife and young child, and we currently rent. We have steady six-figure income and will be moving to Colorado around October 2022 (but could buy/move sooner if warranted). We have approximately $60,000 cash for the purchase (including down payment, closing costs, and rehab), but could go a bit higher if the upside justified doing so. I plan to use an FHA loan and put 3.5-5% down.

Strategy: I'm looking for either a 2-4 unit multifamily (recognizing they are very rare in this price range) or a ranch with a basement that could be converted into a separate unit (assuming the scope of work is realistic with limited contractor availability in Colorado). My goal is for the property to cash flow (even if modestly) after moving out in 2-3 years, and I am open to whatever rental strategy works best for the property (long term, medium term, or short term rental - though I realize STR is only allowed while it is my primary residence, and not with multifamily).

What I’m looking for: After analyzing a number of deals, it looks like a maximum $500,000 property where both units are at least 2/1s is my best bet at cash flowing after move-out. I am open to any area in the Denver metro, but the areas I have zeroed in on are Littleton and Arvada, where I have OCCASIONALLY seen such homes on Zillow/Realtor.com. These are clearly competitive areas, but I am attracted to the combination of stability and appreciation I think these areas offer (but please tell me if I am wrong). I have also seen slightly more favorable prices in Aurora and Commerce city, which also appear to be good options, with maybe less predictability but more upside? Lastly, I love the idea of finding something off-market, but am very much in the early stages of developing this skill. 

Help!: Any house hackers or experienced investors out there who can offer advice or tell me what I might not be considering? Are there areas I should consider or shy away from? I would also certainly welcome any recommended investor meetups or realtors/banks/contractors etc.

Thank you for taking the time to read my life story - I look forward hearing from you!

-David