Does house hacking still work?

[Tyler Lingle]

Right now, I'm pending a duplex for a client: 3241 N College Ave. I cannot reveal the contracted price as that's not allowed but asking price was $410,000. Mortgage is around $2500 when you factor in taxes / insurance / some seller help with paying down some costs. The rent for the tenanted side will be $1500. 

All in all, he's looking at a live-in monthly cost of around $1000 to live in half the side of a large $410k duplex in Indianapolis. 

I still get people telling me, "House hacking won't work now." But my response is, reducing your housing payment, while still paying down the mortgage and receiving appreciation IS the win. 

My question is, would you do this deal as a first time investor? Do you think house hacking is viable in this market?