Seeking Advice on House Hacking Strategy: Buying Single-Family Home to Build Duplex i

[Hamidou Keita]

I’m looking to house hack in Tucson, Arizona, and have made offers on a few duplexes with the goal of living in one unit and renting out the other. However, the duplexes within my budget (~$360K) often require substantial work, and I’m not looking to spend much on rehab. My plan is to put 5% down on a 30-year conventional loan and have the rental income help cover part of the mortgage. Unfortunately, my options for small multifamily properties here are limited.

I’m now considering buying a single-family home on a lot over 8,000 sq ft and building a duplex in the back to generate rental income. I’ve never done this before, so I’m seeking advice on how to analyze deals like this. Specifically, I’m thinking of putting in an offer on a $295K single-family home zoned R-2 for multifamily use, with plans to build the maximum allowable units at the back. The property is in the 85712 or 85745 zip code. Could you provide insights on how to evaluate whether this is a viable strategy?